Yesterday, Japan’s July trade balance showed a bigger deficit than expected, and the dollar rose to 147.81 yen. But when the Nikkei stock index fell sharply, investors bought the yen as a safe choice, and the dollar dropped to 147.15 yen.
In the European market, the dollar went up again, but in the New York market it fell once more. President Trump said that Federal Reserve Board member Cook should resign, which caused the dollar to be sold, and USD/JPY dropped to 146.88 yen. After that, the dollar was bought back to around the mid-147 yen level. The market kept moving up and down without clear direction.
Before Chairman Powell’s speech at the Jackson Hole meeting this weekend, traders do not want to take strong positions. For now, USD/JPY is expected to stay in a narrow range between the low 148 yen level and the low 146 yen level.
Expected USD/JPY Range: 146.20 – 147.80 yen
Note: This information does not guarantee profit. Please make your own decision when trading.