In the Tokyo market, the Nikkei index rose sharply, leading to yen weakness (yen depreciation) and pushing the USD/JPY from 157.50 to 158.41. Later, Japan’s Finance Minister Kato made comments against yen weakness, causing the USD/JPY to fall back to 157.38.
In the New York market, strong U.S. economic data (JOLTs Job Openings and ISM Non-Manufacturing PMI) pushed USD/JPY back up to 158.42. However, the pair failed to clearly break above the high set in Tokyo, dropping back to the 157 range.
Additionally, President-elect Trump commented that ‘interest rates are too high,’ which could be interpreted as opposing a strong dollar. This caused the USD/JPY to end the day lower at 157.59.
A double top near 158.40 has formed, and with comments against both yen weakness and dollar strength, the USD/JPY is expected to test lower levels in the short term.
Expected Range for USD/JPY: 158.40–157.20
Note: The above information is not a guarantee of profits. Please make your own decisions when trading.