USD/JPY prediction for today: Key levels to watch
USD/JPY prediction for today: Key levels to watch
The USD/JPY forecast suggests a cautious approach as the pair trades within a narrow range, encountering both economic and technical challenges. While the Japanese Yen (JPY) attempts to extend its recent rebound from early August lows, uncertainty around the Bank of Japan's (BoJ) rate hike strategy weighs on its strength.
Japan’s August Core Machinery Orders declined by 1.9%, signaling weaker demand and deepening concerns over Japan’s economic outlook. This adds uncertainty around BoJ’s policy plans, increasing downward pressure on the Yen.
On the other hand, the U.S. Dollar (USD) gains support from expectations that the Federal Reserve (Fed) will proceed cautiously with policy changes. With an anticipated 25 basis point rate cut in November, the Fed’s current position gives the USD an edge, pushing USD/JPY towards critical resistance levels.
From a technical standpoint, USD/JPY finds support around the 148.55-148.60 range. A drop below 148.00 may open the door to further declines to 147.35 or even 147.00, potentially marking the end of its recent uptrend. However, a break above 150.00 could signal a bullish run, possibly pushing the pair toward August highs around 150.85-150.90 and eventually 152.70.
In the short term, USD/JPY is expected to trade within a 148.55-149.60 range. A decisive break below 148.40 could mark the start of a downward trend, while the 150.00 resistance level remains robust. Traders should watch for signals from both the Fed and BoJ, as well as global risk sentiment, which may impact USD/JPY stability and provide insights into potential price directions.
At the time of writing, USD/JPY trades at 149.36, marking a 0.11% gain over the last 24 hours.
Also Read: GBP/USD declines following weak UK inflation data
