USD/JPY Daily Outlook: Fed Speakers, Housing Data on Radar
Later in the session, US new home sales data will draw interest. Economists expect new home sales to drop 4.7% month-on-month in April after surging 7.4% in March.
A sharp drop in new home sales could signal weakening economic momentum. Home buyers typically delay home purchases in an uncertain economic outlook. In this scenario, markets may raise bets on a Q3 Fed rate cut, sending USD/JPY toward the May 6 low of 142.350. However, a surprise increase in sales could support a more hawkish Fed stance, driving USD/JPY toward 145 and the 50-day EMA.
Beyond the data, traders should closely monitor Fed comments and trade developments, which continue to drive yen sentiment.
