USD/JPY took a beating in August, but the 155.00 range support is still holding firm.
Will upcoming U.S. inflation data and the FOMC decision bring the bulls back to life, or will renewed intervention threats from Tokyo keep the pair under pressure?
Here’s what we’re watching on the daily time frame:
USD/JPY: Daily
USD/JPY Daily Forex Chart Faster With TradingView
U.S. PPI is due September 10, followed by CPI on September 11 and the FOMC rate decision on September 16. A string of hotter-than-expected readings could give the dollar fresh legs heading into the meeting.
Meanwhile, the threat of another intervention to support the yen remains firmly on the table after Japan spent a record 15.4 trillion yen between late July and late August in a coordinated effort with the U.S.
USD/JPY has been trading within a wide range since tumbling from its July highs near 164.00. The pair continues to test and respect the 155.00 to 155.25 support zone, with price now hovering just below S1 at 156.57. Both moving averages remain well above current levels, keeping the broader bias tilted to the downside, though neither side has managed to break the range decisively.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Japanese yen, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Watch for bullish candlesticks around 155.00 to 155.25 as a sign that buyers are still willing to defend the floor. A bounce could bring the Pivot Point at 158.39 back into play, followed by the 160.00 psychological level if bullish momentum picks up.
On the flip side, stronger selling pressure and a decisive break below 155.00 could clear the way toward the 154.00 handle, followed by S2 at 153.41.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
This USD/JPY analysis flags the threat of renewed Japanese intervention after Tokyo spent a record 15.4 trillion yen supporting the yen. If you’re not sure how central bank currency intervention works, Premium members can read our lesson:
📖 Currency Intervention: When Central Banks Enter the Market
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