USDJPY Chart Technical Outlook bounces up on BoJ Ueda’s comments, 147.65 and 149.00 likely to hold bulls.
BoJ Governor Ueda warned about weaker consumption and cast some doubt on the outlook of the Japanese economy ahead of next week’s widely expected monetary policy meeting.
The market is pricing a 50% chance that the bank will hike interest rates for the first time in 17 years, exiting its ultra-loose policy. This has strengthened the pair across the board over the coming days.
On the other hand, the Dollar remains on the defensive with the market awaiting the release of the US CPI data for more clues about the timing and the size of Fed rate cuts.
Consumer prices are expected to have grown at a 3.1% pace in the year, unchanged from the previous month, while the core CPI is expected to have eased to 3.7% from 3.9% in January. The market needs soft inflation levels to confirm that the Fed will be able to start cutting rates in June.
