Yesterday in the Tokyo market, the yen started weaker. BoJ Deputy Governor Himino said, ‘Risks and uncertainty will not disappear.’ The market thought the Bank of Japan will not rush to raise interest rates.
Also, the 10-year government bond auction was strong at 3.92 times, which lowered yen interest rates. This made investors buy dollars, pushing USD/JPY up from around 147.
When U.S. long-term interest rates rose, USD/JPY moved up to the 148 level. Later, when Secretary Moriyama announced he would resign, political uncertainty increased and the yen weakened further. The price rose about 2 yen to 148.94.
In the New York market, the ISM Manufacturing Index was lower than expected, so USD/JPY dropped to 147.94. But traders bought back dollars because U.S. jobs data will be released soon.
Even though interest rates rose due to tariff uncertainty, confidence in the dollar is weak. The USD/JPY price may not rise much above 149, near the 200-day moving average.
USD/JPY expected range: 147.80 – 149.10 yen
Note: This information does not guarantee profit. Please make your own decisions when trading