At the end of last week, the U.S. August jobs report showed weak results. Because of this, USD/JPY fell from the 148.00 range to the 146.00 range. Markets are now expecting the Federal Reserve to cut interest rates this month.
Since August 1, after the July jobs report, USD/JPY dropped from around 150.90 to the low 146.00 range. Last week’s high of 149.13 was also near the 61.8% retracement level, which means the price gap has been filled.
This week, U.S. CPI is expected to rise from 2.7% to 2.9%. Even if the dollar gets some buying support, it will be difficult to move above last week’s high. If inflation risk does not increase, weak jobs may lead to more dollar selling.
However, since this week is the blackout period before the FOMC meeting, traders may not take big positions. Because of this, the downside may also be limited.
Today’s USD/JPY expected range: 147.00 – 148.00 yen
This week’s USD/JPY expected range: 145.80 – 148.80 yen
Note: This information does not guarantee profits. Please make your own decisions when trading.