Last week, people expected that the Bank of Japan would not raise interest rates soon, and the U.S. Federal Reserve would also wait before cutting rates. Because of this, the yen became weaker, and the dollar became stronger.
President Trump said he might add more tariffs to other countries. This makes U.S.-Japan talks more difficult, which also pushes the yen down. Also, in Japan, the ruling party is expected to lose in the weekend election, which creates political worries and adds more pressure on the yen.
This week, the U.S. CPI (Consumer Price Index) will be announced. If prices go up, there will be less chance of early interest rate cuts, and people may buy more dollars.
Because of the strong dollar and weak yen, the price may reach the upper 149 yen level. However, if the U.S. financial situation gets worse or there is more pressure to cut U.S. interest rates, people might sell the dollar. Depending on the CPI result, the market could change quickly, so traders should be careful.
Today’s USD/JPY expected range: 146.80 – 148.00
This week’s USD/JPY expected range: 145.60 – 149.30
Note: This information does not guarantee profits. Please make your own decisions when trading.