Yesterday, during Tokyo trading hours, Bank of Japan board member Tamura said that interest rates may need to rise to at least 1% by late 2025. After this comment, the USD/JPY exchange rate dropped to 151.81. Before this, Japan’s Finance Minister Kato also mentioned that rising prices mean inflation, leading to expectations of an earlier rate hike in Japan.
Some believe these comments were made with today’s Japan-U.S. summit in mind. Investors are watching to see if the leaders will discuss Japan’s weak yen.
Later today, the U.S. jobs report will be released. If the report is weak, the USD/JPY exchange rate may fall further. Since the exchange rate dropped below the 200-day moving average yesterday, selling pressure on the dollar could increase.
Expected USD/JPY Range: 152.50 – 149.20
Note: This information does not guarantee profits. Please make your own decisions when trading.