Early Monday morning, Japan’s GDP for January to December was higher than expected, leading to yen buying. The USD/JPY fell from around 152.50 to 151.50.
Even though there was some buying in the European market, the yen kept getting stronger, and USD/JPY dropped further to 151.35 by the end of the day.
Tomorrow, Japan will release its trade balance data. If the trade surplus with the U.S. increases, there could be pressure from President Trump to adjust the weak yen.
Also, Japan’s inflation data will be released this weekend. If inflation is high, people may expect the Bank of Japan to raise interest rates soon, which could keep USD/JPY from rising.
Expected USD/JPY Range: 152.00 – 150.50
Note: This information does not guarantee profit. Make your own decisions when trading.