Early yesterday in the Tokyo market, USD/JPY fell to 157.12 yen due to reports that the new Trump administration had not yet approved or decided on tariff policies. Later, Bank of Japan Deputy Governor Nagamine’s comments, which leaned toward a soft stance, mentioned discussions about a rate hike in the upcoming meeting but acknowledged the difficulty of timing policy changes. This pushed USD/JPY back to 158 yen.
However, a sharp drop in the Nikkei stock average brought it down again to 157.30 yen. In the New York session, the U.S. PPI came in below expectations, causing interest rates to briefly drop before quickly recovering. Price movements remained limited as investors awaited today’s U.S. Consumer Price Index (CPI) report.
The CPI is expected to show slower growth than the previous month, which may keep the dollar’s gains limited. However, concerns about inflation due to the start of the new Trump administration next week could provide support for the dollar.
USD/JPY Expected Range: 158.80–157.40 yen
Note: The above information does not guarantee profits. Make your trading decisions carefully.