Yesterday, after a public holiday, the Tokyo market reacted to news that the U.S. and U.K. had agreed on a trade deal. This made investors feel more confident and caused the Japanese yen to weaken, while the U.S. dollar became stronger. In the New York market, President Trump officially announced the agreement and also said there could be lower tariffs in talks with China this weekend. This pushed the dollar up to the 146 yen range and showed strong support for the dollar.
Because the price moved above the downward trend, it may be a sign that the trend is changing. However, President Trump again criticized Federal Reserve Chairman Powell, calling him “very slow” and “stupid.” This means Trump may keep pushing for lower interest rates in the U.S. If this continues, and Japan keeps its plan to raise rates while the U.S. lowers them, the dollar’s rise may not last long.
USD/JPY Forecast Range: 144.50 – 147.00
Note: This information does not guarantee profits. Please make your own decisions when trading.