Later Friday, traders should monitor FOMC members’ speeches for insights into the potential timing of an interest rate cut.
Support for an October rate cut to bolster the labor market could signal back-to-back rate cuts in the fourth quarter. A dovish policy outlook may push USD/JPY toward the September 17 low of 145.481.
Conversely, calls to delay further policy easing until December may drive the pair toward the 149.358 resistance level.
USD/JPY Scenarios: Hawkish BoJ vs. Dovish Fed Risks
Bearish USD/JPY Scenario: Hawkish BoJ or dovish Fed rhetoric could push USD/JPY toward 145.
Bullish USD/JPY Scenario: Dovish BoJ cues or hawkish Fed rhetoric could send the pair toward 149.358.
USD/JPY Daily Chart sends bullish price signals.
The yen isn’t the only currency in focus. Shifting policy signals from the Fed and ongoing US-China trade talks are also influencing demand for the Aussie dollar, making AUD/USD the next key pair to watch.
