At the start of the week, Tokyo markets were closed for Respect for the Aged Day. The dollar weakened first, and USD/JPY fell from 147.75 to 147.35. Later, with thin trading, it was bought back to 147.60.
In the European session, the dollar weakened again and dropped to 147.24. Before the Federal Open Market Committee (FOMC) meeting, the dollar’s rise looks difficult. On the other hand, because the Bank of Japan is still cautious about raising interest rates, the yen is also not easy to buy. As a result, the market is in a standstill.
The Bollinger Band is very narrow, which shows the price may break out strongly in one direction soon. The upside is near 148.80 (200-day MA), and the downside is near 146.20 (90-day MA). With the Japan–US policy meetings, there is a high chance of a breakout.
USD/JPY expected range: 146.80 – 147.80 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.