Directional risks may be skewing lower, but the pair remains sensitive to Fed policy and U.S. labour market data for any decisive breakout.
- USD/JPY closes below 50-day MA for the first time since July.
- Momentum signals turning bearish; RSI under 50, MACD negative.
- U.S. rate expectations likely the main catalyst for next breakout.
USD/JPY Outlook Summary
A surprise drop in Japanese and ongoing strength in underlying pressures in Tokyo keeps the Bank of Japan on track to continue lifting interest rates in the months ahead, offering support for the against the .
Following a close beneath the key 50-day moving average on Thursday for the first time since early July, directional risks for USD/JPY may be skewing lower. However, given strong linkages between market pricing for Fed rate cuts and USD/JPY movements over the past fortnight, the most likely catalyst to see the pair break out of…
