Short-term Forecast for USD/JPY

USD/JPY trends will likely depend on this week’s trade and inflation data from Japan. Weaker trends could reduce expectations of a Q4 2024 BoJ rate hike. Delays to a BoJ rate hike could further impact Japanese Yen demand. However, US retail sales and jobless claims will influence sentiment toward the Fed rate path and US dollar demand.

Traders should stay alert as monetary policy chatter, Japan’s economic data, and the US economic indicators, which will affect 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 holds above the 50-day and 200-day EMAs, sending bullish price signals.

A USD/JPY return to 150 could signal a move toward the 151.685 resistance level and the trend line. Furthermore, a break above the 200-day EMA could support a move toward the trend line and the 151.685 resistance level. Selling pressure may increase at the resistance level. The trend line is confluent with the 151.685 resistance level.

Japan’s industrial production, US consumer inflation expectations, and central bank commentary require close monitoring.

Conversely, a drop below the 200-day EMA could bring the 148.529 support level into play. A fall through the 148.529 support level may signal a fall toward 147.5.

The 14-day RSI at 65.37 indicates a USD/JPY move to 151.685 resistance level before reaching overbought territory.