USD/JPY Faces Uncertainty: Powell’s Speech and ISM Data in the Spotlight

Overview

The USD/JPY pair is currently in a critical phase, with market focus on two key developments. Jerome Powell, the Federal Reserve Chair, is scheduled to speak twice today, with his remarks expected to provide vital insights into the Fed’s interest rate plans. These speeches are particularly significant as they precede the December Federal Reserve meeting.

Also today, the release of the ISM Manufacturing PMI, an indicator reflecting the health of the US manufacturing sector, is anticipated. These events are unfolding against a backdrop of a dovish Federal Reserve, with expectations of interest rate cuts, which typically leads to a weaker US Dollar and affects the USD/JPY pair.

Forecast

We can expect significant volatility in the USD/JPY pair. If Powell’s speeches or the ISM data confirm a dovish Fed stance, the pair might decline, with a key focus on the 147.17 support level. Conversely, if the data or Powell’s comments are more positive for the Dollar, the pair could rebound, potentially testing the 149.60 resistance level.

Price Chart