In the Tokyo market yesterday, the USD/JPY (U.S. dollar vs Japanese yen) stayed strong. The day before, Vietnam and the U.S. agreed on a deal about tariffs, which made the U.S. dollar go down for a short time. But there was no strong pressure in the Japan-U.S. talks to stop the yen from weakening.
Also, Bank of Japan member Mr. Takata showed a careful attitude about raising interest rates, which caused more people to sell yen. As a result, USD/JPY rose to just below 144 yen.
In the New York market, the U.S. jobs report was stronger than expected. This pushed the dollar even higher, and USD/JPY went up to 145.23 yen. All three major stock indexes in the U.S. also went up, which made investors take more risks. This led to more yen selling, and USD/JPY ended the day at a high level.
Even though the U.S. House of Representatives passed the Trump tax cut bill and Treasury Secretary Bessent asked the Fed to lower interest rates, the market did not react much.
Today, the New York market is closed. Because of this, trading volume may be low, and we might see some traders closing their positions, so it’s important to watch the market closely.
Expected USD/JPY range: 144.20 to 145.20 (38.2% chance)
Note: This information does not guarantee profits. Please make your own decisions when trading.