Before today’s U.S. central bank meeting (FOMC), people started buying back U.S. dollars, and the USD/JPY rate went up to 148.80 yen. However, because stock prices in Japan (Nikkei) and the U.S. (New York Stock Exchange) went down, many people bought Japanese yen as a safe choice. As a result, the USD/JPY rate moved up and down like a tug-of-war.
The U.S. central bank is expected to keep interest rates the same. But the central bank chairman, Mr. Powell, may make comments that sound soft and careful (supporting lower rates). After that, Japan’s central bank will have a meeting. There is a chance that they may show a stronger attitude toward raising rates. If this happens, the Japanese yen may become stronger, and the USD/JPY rate may fall.
There is an important technical level around 149.50 yen (called the 200-day moving average), so many traders may want to sell near that level.
USD/JPY Forecast Range: 147.70 – 149.50 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.