USD/JPY Daily Outlook: Fed Speakers in Focus
Later in the session, FOMC member speeches could give clues on the Fed’s rate path and influence US dollar appetite. The Fed’s Tom Barkin will speak, with comments on the labor market, inflation, tariffs, and the timing of a Fed rate cut requiring consideration. Barkin recently downplayed the chances of a US recession and the need for imminent rate cuts.
Support for a Q3 Fed rate cut could impact US dollar demand, dragging USD/JPY toward the May 6 low of 142.350. However, calls to delay Fed rate cuts beyond Q3 amid tariff-related uncertainties may lift USD/JPY toward 145 and the 50-day EMA.
Beyond the Fed, traders should closely track trade developments, which flows into the Japanese Yen.
