USD/JPY remains volatile as US-Japan trade talks stall and BoJ signals caution on future policy tightening.
Later in the US session, Fed commentary may drive price action. Hawkish remarks, following Fed Chair Powell’s warning of slower growth and higher prices, could lift USD/JPY toward 145. Conversely, support for multiple rate cuts to counter tariff effects on the economy could send the pair toward the 140.309 support level.
Tariff-related headlines also need consideration. The threat of higher tariffs and slow progress toward trade deals could trigger another flight to safety, pressuring the USD/JPY. In contrast, optimism over softer tariffs or a US-China agreement could boost risk appetite, weighing on Yen demand.
Potential USD/JPY Moves:
Bullish US dollar Scenario: Easing tariff tensions or hawkish Fed rhetoric could drive the USD/JPY pair toward 145.
Bearish US dollar Scenario: Renewed tariff threats or dovish Fed commentary may push the pair toward the 140.309 support level.
