Yesterday during Tokyo trading hours, President Trump mentioned a possible 10% tariff on China and targeting the EU for tariffs, which caused the euro to weaken and strengthened the US dollar. The Nikkei Index also rose by over 600 points, pushing the USD/JPY pair close to 156. Later, in European and US markets, stock prices rose significantly, spreading a risk-on mood, and USD/JPY climbed to 156.70, closing at a high level.
For tomorrow’s Bank of Japan meeting, a 0.25% interest rate hike is already expected by the market. As a result, further yen buying is unlikely, and the yen may continue to weaken.
USD/JPY Expected Range: 157.20–156.00
Note: The above information does not guarantee profits. Please make your own decisions when trading.