The U.S. dollar to Japanese yen rate moved a lot after the U.S. and China both announced a large 11.5% cut in tariffs, which surprised the market. This caused the yen to become stronger, and the exchange rate dropped from around 148.50 yen to 147.50 yen.
During Tokyo trading hours, a Bank of Japan (BOJ) report showed that they may raise interest rates again if policy changes. Also, Japan’s Finance Minister Kato said he might talk about exchange rates with the U.S. Treasury Secretary at next week’s G7 meeting. This made people think again that the BOJ might raise rates, which helped the yen.
Later, the dollar went up a little, but then it dropped again after weak U.S. inflation data was released. The exchange rate ended near 147.40 yen.
The large and sudden tariff cuts by the U.S. and China were surprising, but some people in the market are worried because the changes were so extreme. Also, with possible BOJ rate hikes and ongoing world tensions, some investors are buying yen as a safe choice.
USD/JPY Forecast Range: 146.30 yen -148.30 yen
Note: This information does not guarantee profit. Please make your own decisions when trading.