Even though the Tokyo market was closed yesterday, the U.S. dollar started to recover. The USD/JPY pair began near 142 yen and went up to 142.75 yen in the European market.Later, the U.S. trade deficit report showed a record-high deficit, and Treasury Secretary Bessent made strong comments about China. These things caused worries about worsening U.S.-China relations, so the dollar weakened, and USD/JPY dropped to 141.97 yen.
After that, it went back up to around 142.50 yen, but the dollar still faces resistance when trying to rise higher.
However, Bessent also said that talks with Japan were “meaningful.” If the U.S.-Japan trade talks reach a deal, it could help push USD/JPY higher.
Starting today, the Bank of Japan will begin its meeting. Also, during U.S. trading hours, there will be a speech marking the 100 days of the Trump administration. These events could cause the market to move both up and down, making it hard to know which direction it will go.
Expected USD/JPY range: 142.80 yen to 141.50 yen (61.8%)
Note: This information does not guarantee profits. Please make your own decisions when trading.