The announcement of tariffs early this morning caused market unrest, and stock prices dropped sharply in many countries. US government bonds, considered a safe asset, were also bought, causing US long-term interest rates to fall.
There are now expectations that the Federal Reserve (FRB) may lower interest rates to support stock prices. Attention is focused on today’s speech by Chair Powell. Also, Commerce Secretary Ratnick made a comment saying that a weaker dollar would make exports easier, showing acceptance of a weaker dollar.
The effect of the tariffs is also impacting the US itself. If today’s employment data shows weaker results than expected, concerns about stagflation (a combination of high prices and weak economy) may increase.Because of the rapid selling of the dollar, there is a chance that the price may temporarily return to fill the gap, but after that, dollar selling is expected to continue.
USD/JPY Expected Range: 147.00 to 144.20 (76.4%)
Note: The above information does not guarantee profit. Please make your own decisions when trading.