Later in the session on Monday, investors should monitor Fed commentary. Reactions to last week’s inflation and retail sales data will likely influence the USD/JPY trend. Concerns about tariffs fueling inflation and calls to delay rate cuts may send USD/JPY toward the 149.358 resistance level. On the other hand, dovish Fed policy signals could push the pair toward the 200-day EMA.
USD/JPY: Key Scenarios to Watch
Bearish USD/JPY Scenario: Progress toward a US-Japan trade deal, hawkish BoJ rhetoric, or dovish Fed cues. Such factors could push USD/JPY toward the 200-day EMA and potentially the 147.5 level.
Bullish USD/JPY Scenario: Rising US-Japan trade tensions, dovish BoJ signals, or hawkish Fed chatter. These may drive the pair toward the 149.358 resistance level and the 150 level.
