Later in the session on Wednesday, Fed speakers may drive US dollar demand. Growing support for a September Fed rate cut and further easing in Q4 could push USD/JPY toward the 50-day EMA.
On the other hand, persistent inflation concerns may keep rate cut bets in check and drive the pair above the 200-day EMA. A break above the 200-day EMA would bring the 149.358 resistance level into play.
However, with recent inflation data already fresh in traders’ minds, the FOMC Meeting Minutes may have only a limited impact.
USD/JPY: Key Scenarios to Watch
Bearish USD/JPY Scenario: Strong Japanese trade data, hawkish BoJ signals, or dovish Fed chatter. These factors could push USD/JPY toward the 50-day EMA, exposing the 145 level.
Bullish USD/JPY Scenario: Weak Japanese trade data, dovish BoJ rhetoric, or hawkish Fed cues. These factors may send the pair above the 200-day EMA and pave the way toward the 149.358 resistance level.
