Get started

Uj

USD/JPY Price ForecastThe US dollar has fallen significantly during the day on Friday, continuing the down move that we had started on Thursday after Donald Trump announced a tariff on both steel and aluminum. This has put a lot of fear into the market, which of course has people running towards the Japanese yen. I suspect that most of the reaction in this market will be due to noise and news coming out over the course of the weekend. With the United States let been a 25% tariff on steel, the world awaits to see what the Chinese and the Canadians do. If we start to see a bit of a trade war, it will be interesting to see how the Forex markets react. I believe that safety currencies will continue to be bought at that point, and although the US dollar is a safety currency, it plays a secondary role to the Japanese yen in this scenario. As I record this, we are starting to roll over towards the 105 handle again, which I suspect is the trading market telling us that they don’t want to carry positions over the weekend. Because of this, I am flat of this pair but recognize that we will get an impulsive move that we can react to soon. The S&P 500 ended another turbulent week on an upbeat note Friday but major indexes posted their worst week of losses since early February as Trump’s threat to impose import tariffs on steel and aluminum rattled investors. The dollar fell against most currencies, dropping to its lowest in more than two years against the yen, as Trump’s tariffs proposal raised prospects of a damaging trade war. Canadian Prime Minister Justin Trudeau said any U.S. tariffs on steel and aluminum would be“absolutely unacceptable” and vowed to continue to engage with U.S. officials on the issue. The International Monetary Fund also expressed concern, saying the proposed tariffs would likely damage the U.S. economy and those of other nations.
Long
by LegacyVA