Safe-haven yen buying returned amid concerns over an AI bubble. The morning USD/JPY forecast range is ¥155.800–¥157.600; the pair fell approximately 0.9% on a closing-price basis the previous day, while the intraday range exceeded ¥1.
USD/JPY fell approximately 0.9% the previous day based on its closing price, marking the first time in 14 trading days that the daily range exceeded ¥1. Yen buying prevailed against a backdrop of global equity declines, sending USD/JPY down to around ¥156.69 at one point. Oil prices rose despite concerns over the situation in the Middle East, but the yen was bought. Concerns over an AI bubble are mounting in the market, and share-price movements are expected to remain the main driver of exchange-rate fluctuations today.
Today's USD/JPY forecast range is ¥155.800–¥157.600, while the lower edge of the Ichimoku cloud on the daily chart, around ¥258.05, is seen as the near-term downside target. Uncertainty over the outlook for AI investment could affect share-price movements through its impact on the US economy, and continued declines in share prices could put further downward pressure on USD/JPY.