In the Tokyo market after the holiday, USD/JPY started in the high 149 yen range, but because it failed to reach 150 yen the day before, selling pressure pushed it down to 149.45 yen. However, as the Nikkei stock average rose, USD/JPY went back up to 149.75 yen. Later, as U.S. long-term interest rates fell, USD/JPY dropped to 148.85 yen. In the New York market after the holiday, it was bought up to 149.54 yen, but it ended in the low 149 yen range, showing heavy resistance to moving higher. It seems likely that USD/JPY failed to break above 150 yen and has reached a temporary peak.
However, due to reduced expectations of a major interest rate cut by the Federal Reserve (Fed), the U.S. dollar is still being bought, providing strong support for the downside.
With the U.S. presidential election and rising geopolitical risks, markets are seeing some adjustments, so there’s a risk of USD/JPY moving lower in the short term.
USD/JPY Forecast Range: 149.80 yen – 148.60 yen (50%)
Note: The information above does not guarantee profits. Please make your own decisions when trading.