After the long holiday, in the Tokyo market, the dollar-yen rose to 147.53 but then started to fall.
Because more Trump-supported members are joining the Fed, people think bigger rate cuts may happen. This caused the dollar-yen to fall below the Ichimoku cloud support level, reaching 146.28. At this level, the 90-day moving average (90MA) is located, so the fall stopped there.
At the Federal Open Market Committee (FOMC) meeting early tomorrow morning, a 0.25% rate cut is fully expected. Yesterday, the market also started to expect a 0.5% cut. If a 0.5% cut happens, the dollar-yen may go up for a short time.
However, if the outlook for interest rates this year and next year stays the same, the recovery will be small.
If the price clearly goes below 146.20, which is the 90MA and range support, a new downward trend for the dollar may begin.
Expected dollar-yen range: 145.40 – 147.20 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.