USD/JPY is expected to stay within the range of 147.00 to 148.20. Recently, there hasn’t been much upward movement in prices, causing this stable phase. In the short term, the US Dollar may drop further, but it’s unlikely to go below 145.80. If it rises above 149.00, it would signal the end of the downward trend. Two days ago, the Dollar fell to 146.60 but then bounced back. However, this bounce didn’t show much strength. We expect the market to stay stable for the next few weeks, keeping USD/JPY within this range. It’s important to be cautious due to the risks in the market. Trading decisions should be made after thorough research, considering the possibility of losses in foreign exchange trading. We anticipate that the USD/JPY pair will remain within the range of 147.00 and 148.20 in the upcoming weeks. The latest US CPI data from last week showed core inflation steady at 3.1%, which lowers chances of any immediate changes in Federal Reserve policy. This economic stability supports the current phase of consolidation for the currency pair. This calm suggests that traders might find it beneficial to sell options during this period of low volatility. We are looking into selling out-of-the-money strangles, with strike prices around 145.50 and 149.50. This strategy aims to earn premium as long as the pair stays within this wider range. The support level at 145.80 looks strong, backed by a significant interest rate advantage for the US Dollar. The drop to 146.60 on August 4th was quickly reversed, indicating limited demand for a stronger Yen without a clear policy change from the Bank of Japan. We see this level as solid short-term support. A rise above 149.00 would be a key indicator, as this level is seen as a psychological barrier leading to the critical 150.00 mark. We remember the Japanese Ministry of Finance’s past interventions to strengthen the Yen when the Dollar became too strong, which makes us cautious about lasting moves above 149.00. Additionally, the US non-farm payroll report from August 1st met expectations of 195,000 jobs added, confirming views of a stable economy. This gives us little reason to expect a major breakout soon. Therefore, derivative traders might look for strategies that benefit from time decay within this established range. Traders should be careful and set alerts for important levels. A clear daily close above 148.20 could hint at a test of the upper breakout point, while a drop below 147.00 might lead to retesting recent lows. Keeping an eye on comments from both central banks will be essential for any signs that this calm period is ending.

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