At the start of the Tokyo market, Bank of Japan Governor Ueda showed a cautious stance on raising interest rates. This caused people to sell the yen. However, strong selling of other currencies like the Australian and New Zealand dollars also led to selling of yen in cross-currency trades, which limited the rise of the dollar-yen rate.
In the European market, the euro and pound fell more, which made the U.S. dollar stronger overall. Later, in the New York market, the U.S. Job Openings and Labor Turnover Survey (JOLTS) report was better than expected. This pushed the dollar-yen rate up to the 144 yen level by the end of the day. Many investors were adjusting their positions.
Because the U.S. jobs report is coming at the end of the week, the market was cautious. In the end, the dollar-yen rate returned to the same level as the day before, recovering from the earlier drop.
There may be a U.S.-China leaders’ meeting this week, but uncertainty about tariffs is keeping the dollar from rising too much. Once position adjustments are done, the dollar may start to fall again.
Dollar-Yen Expected Range: 143.00 yen – 144.60 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.