In Tokyo yesterday, the U.S. dollar fell after President Trump started new tariffs. The USD/JPY dropped to 144.58 yen, but because the market already expected this news, the reaction was small.
In Europe, stock prices dropped because people worried that the trade fight could hurt the world economy. The same thing happened in the U.S. market, where all three major indexes went down. This made investors buy the yen for safety, and the USD/JPY fell to 144 yen. Also, U.S. Treasury Secretary Bessent said the stronger yen was “natural,” which pushed the dollar lower.
Later, President Trump said he would pause new tariffs for 90 days for countries that did not take revenge. This good news made stock prices go up quickly. Investors started taking more risks again, and the USD/JPY jumped to 148.26 yen, closing near the high point.
For now, the worst-case fear has passed, and some traders are changing their positions. But the market is still unstable.
People now feel a bit more relaxed, and many are watching the U.S. inflation data (CPI) to be released today. If the market stays calm, there could be more selling of the U.S. dollar because some think the U.S. central bank might lower interest rates.
Expected USD/JPY Price Range: 148.50 to 146.00 yen
Note: This information is not a guarantee of profit. Please make your own decisions when trading.