At the start of the Tokyo market, the dollar fell sharply. President Trump announced the dismissal of Federal Reserve Board (FRB) Governor Cook, and people thought trust in the FRB would fall. Because of this, USD/JPY dropped from around 147.90 yen to 146.99 yen. Later, Governor Cook said the president has no right to dismiss him, and the dollar recovered to 147.90 yen. However, it did not reach the previous day’s high of 147.93 yen.
In the New York market, worries about trust in the FRB came back. Also, Chairman Powell’s comments last week made people expect a rate cut, and U.S. long-term interest rates fell. USD/JPY went down to 147.11 yen, but since U.S. stock markets rose, the dollar’s fall was limited.
In the end, even with worries about the FRB and expectations of rate cuts, buyers came in whenever USD/JPY went below 147 yen, showing strong support. On the other hand, it was also clear that going above 148 yen is difficult. Until new news appears, USD/JPY will likely stay moving around 147 yen.
USD/JPY expected range: 146.80 – 147.90 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.