Later Monday, FOMC members’ speeches could affect US dollar demand and USD/JPY trends. Fed Vice-Chair John Williams and FOMC members Christopher Waller, Beth Hammack, and Alberto Musalem are on the calendar to deliver speeches.
Comments on the recent GDP, jobless claims, and inflation numbers will provide clues about the timing of Fed rate cuts.
Calls to pause further monetary policy easing to assess labor market and inflation data could send USD/JPY to 150. A sustained move above 150 would bring the August high of 150.917 into play. On the other hand, support for an October rate cut may send the pair below the 149.358 support level. If breached, the 200-day EMA would be the next key technical support level.
USD/JPY Scenarios: Hawkish BoJ vs. Dovish Fed Risks
Bearish USD/JPY Scenario: Hawkish BoJ rhetoric, stronger Japanese data, or dovish Fed signals could push USD/JPY toward 145.
Bullish USD/JPY Scenario: Dovish BoJ cues, weaker Japanese data, or hawkish Fed commentary could send the pair toward 150.917.
Read the full USD/JPY forecast, including chart setups and trade ideas.
As traders consider a potential BoJ rate hike, attention is also turning to the AUD/USD as Aussie data clouds the RBA’s policy outlook.
