Focus on Fed Speeches and US Consumer Inflation Numbers in USD/JPY Forecast

Investors and traders in the stock market are closely watching the USD/JPY pair following the unexpected increase in the Michigan Inflation Expectations Index on Friday. This uptick contributed to gains for the USD/JPY, and now all eyes are on the upcoming US inflation numbers and the speeches from FOMC members Loretta Mester and Philip Jefferson.

At Extreme Investor Network, we emphasize the importance of staying informed about various market indicators and events that could impact trading decisions. The short-term forecast for the USD/JPY hinges on the US inflation numbers, with hotter-than-expected data potentially spurring speculation about a Fed rate hike. However, intervention threats could limit the pair’s upside potential.

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Looking at the USD/JPY price action, the pair is currently trading above the 50-day and 200-day EMAs, indicating bullish sentiment. A breakout above the 156 handle could lead to a rally towards the 158 level and potentially even higher. On the other hand, a drop below 155 could bring the 50-day EMA into play, with further support at the 151.685 level.

Take into account factors such as Bank of Japan commentary, US consumer inflation expectations, and remarks from Fed speakers when making trading decisions involving the USD/JPY. The 14-day RSI currently sits at 57.90, suggesting a potential move towards the 160 handle before entering overbought territory.

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