Shifting to the US session, the S&P Global Services PMI will influence the Fed rate path and US dollar demand. Economists forecast the Services PMI to rise from 52.9 in January to 53.0 in February.
A sharper rise in the headline PMI, higher employment, and rising prices may further dampen expectations of an H1 2025 Fed rate cut. A more hawkish Fed stance may support USD strength, pushing USD/JPY toward the 200-day EMA. A break above the 200-day EMA could bring the 50-day EMA into play.
Conversely, weaker PMI data may retrigger expectations of an H1 2025 Fed move, potentially pulling the pair below the 149.358 support level, with 148 as the next price target.
