After the news about Fed Chair Powell possibly stepping down, the U.S. dollar fell. But in the Tokyo market, the dollar started to go up again. Worries about Japan’s political situation before the Upper House election also caused people to sell yen, so USD/JPY rose from the upper 147 yen level to the upper 148 yen level.
In the New York market, strong U.S. economic data helped USD/JPY go up to 149.08 yen. But it didn’t reach the previous day’s high of 149.18 yen and started to fall back, returning to around the middle of the 148 yen level.
The shock from the Powell news is calming down. With strong U.S. data and election worries in Japan, more people may sell yen, so the USD/JPY may stay strong. However, today there is a signal (called “cloud twist” from a technical chart) that could mean a change in trend. People are watching to see if the price drops below 146.70 yen, which is a key level.
Expected USD/JPY Range: 146.70 -149.00 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.