Economists predict the ISM Services PMI will increase from 51.5 in August to 51.6 in September. A larger-than-expected increase would signal a robust US economy as the services sector accounts for nearly 80% of GDP. Conversely, a drop below 50 could reignite fears of a hard US landing, possibly pushing the USD/JPY below 145.

Short-term Forecast for USD/JPY

USD/JPY trends will likely hinge on the Services PMI from Japan and the US. Upbeat figures from Japan and a weaker ISM Services PMI could fuel expectations of monetary policy divergence favoring the Yen. This combination may send the USD/JPY below 145.

Traders should stay vigilant as this week’s data will impact trading USD/JPY strategies. Monitor real-time data, central bank views, and expert commentary to adjust your trading strategies accordingly. Stay ahead of the market with our expert insights.

USD/JPY Technical Analysis

Daily Chart

The USD/JPY hovers above the 50-day EMA while remaining below the 200-day EMA, sending bullish near-term but bearish longer-term price signals.

A USD/JPY return to 147.5 could bring the 148.529 resistance level into play. Furthermore, a break above the 148.529 resistance level may signal a move toward the 200-day EMA.

The US and Japan’s Services PMIs and central bank commentary require consideration.

Conversely, a break below the 50-day EMA and the 145.891 support level could give the bears a run at the 143.495 support level.

The 14-day RSI at 58.20 suggests a USD/JPY climb to the 200-day EMA before entering overbought territory.