Later Wednesday, FOMC members’ speeches could influence demand for the US dollar and the USD/JPY pair. Hawkish rhetoric, calling for delays to further rate cuts until inflation softens, could send USD/JPY toward 148, bringing the 149.358 resistance level into play.
On the other hand, rising support for rate cuts in October and December would likely weigh on the US dollar. A more dovish Fed policy stance could push USD/JPY toward 145.
USD/JPY Scenarios: Hawkish BoJ vs. Dovish Fed Risks
Bearish USD/JPY Scenario: Hawkish BoJ cues or dovish Fed signals could push USD/JPY toward 145.
Bullish USD/JPY Scenario: Dovish BoJ signals or hawkish Fed chatter could send the pair toward 149.358.
The yen is not the only currency facing potential policy shifts. Inflation numbers from Australia could fuel speculation about a November rate cut, spotlighting the AUD/USD pair.
