The Impact of US Jobs Report and FOMC Member Speeches on USD/JPY

The Impact of US Jobs Report and FOMC Member Speeches on USD/JPY

The Federal Reserve may potentially delay the timeline for an interest rate cut, which could have implications on borrowing costs and disposable income for consumers. This decision could be influenced by a variety of factors, including the US Jobs Report and speeches by members of the Federal Open Market Committee (FOMC).

Upcoming speeches by FOMC members such as Thomas Barkin, Susan Collins, and Michelle Bowman are scheduled and could provide insight into the Fed’s stance on monetary policy. The reactions to the US Jobs Report, as well as the viewpoints on the timing of interest rate cuts, will be closely monitored.

The short-term trends for the USD/JPY currency pair will heavily rely on both the US Jobs Report and the commentary from the Federal Reserve. A robust US Jobs Report and a hawkish tone from the Fed could push the USD/JPY higher. However, the possibility of intervention threats may prevent a sustained move above 152.

Currently, the USD/JPY is trading comfortably above both the 50-day and 200-day Exponential Moving Averages (EMAs), indicating a bullish sentiment in the market. A break above the resistance level of 151.685 could pave the way for a move towards the key psychological barrier of 152.

Aside from the US Jobs Report and Fed commentary, other factors such as intervention threats from the Bank of Japan (BoJ) and additional speeches by FOMC members should also be taken into consideration. Any rhetoric that suggests a delay in interest rate cuts could impact the USD/JPY exchange rate.

In the event that the USD/JPY drops below the 151 handle, it could signal a shift in momentum favoring the bears. A breach below the 50-day EMA may open the door for a test of the support level at 148.529. The current Relative Strength Index (RSI) at 58.64 indicates that the USD/JPY may need to break above 152 before entering overbought territory.

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