FOMC members remain focused on the services sector, wage growth, consumption, and consumer price trends.

Beyond the numbers, investors should monitor FOMC member commentary. Reactions to the US Jobs Report and recent inflation figures could move the dial. FOMC member Neel Kashkari is on the calendar to speak.

Short-term Forecast

Near-term trends for the USD/JPY hinge on service sector data, wage growth, and household spending figures from Japan. Better-than-expected numbers could fuel speculation about a BoJ interest rate hike. However, investors should also consider Fed chatter amidst rising expectations of a September Fed rate cut.

USD/JPY Price Action

Daily Chart

The USD/JPY sat above the 50-day and 200-day EMAs, sending bullish price signals.

A USD/JPY break above the 155 handle would support a move toward the 158 handle. A return to the 158 handle could give the bulls a run at the April 29 high of 160.209.

Service sector PMI numbers from Japan and central bank commentary warrant investor attention.

Alternatively, a USD/JPY break below the 50-day EMA could signal a drop to the 151.685 support level.

The 14-day RSI at 51.33 indicates a USD/JPY move to the 158 handle before entering overbought territory.