Short-term Forecast for USD/JPY
USD/JPY trends will likely hinge on inflation numbers from Japan and the US and central bank commentary. Softer inflation figures from Japan could dampen bets on a Q4 2024 BoJ rate hike. However, a lower-than-expected US inflation rate could raise expectations of a 50-basis point Fed rate cut.
A more dovish Fed rate path may narrow the interest rate differential between the US and Japan, impacting US dollar demand.
Traders should stay alert as monetary policy chatter, Japan’s economic data, and the US CPI Report will impact trading USD/JPY strategies. Monitor real-time data, central bank views, and expert commentary to adjust your trading strategies accordingly. Stay ahead of the market with our expert insights.
USD/JPY Technical Analysis
Daily Chart
The USD/JPY remains comfortably above the 50-day EMA while hovering below the 200-day EMA, affirming bullish near-term but bearish longer-term price signals.
A USD/JPY break above the 200-day EMA could give the bulls a run at 150. Furthermore, a breakout from 150 may signal a move toward the trend line and the 151.685 resistance level.
Inflation figures and central bank commentary require consideration.
Conversely, a break below the 148.529 support level could indicate a drop toward 147.500. A fall through 147.500 may bring the 50-day EMA and the 145.891 support level into play.
The 14-day RSI at 65.28 indicates a USD/JPY move to the 200-day EMA before entering overbought territory.
