USD/JPY Price Forecast: Trades sideways above 147.00 ahead of key US-Japan events

• USD/JPY wobbles above 147.00 ahead of flash US S&P Global PMI, and Japan’s National CPI data.

• Investors await Fed Powell’s speech at Jackson Hole Symposium to get fresh cues on the monetary policy outlook.

• The pair has been trading close the 20-day EMA from past few weeks.

The USD/JPY pair consolidates in a tight range around 147.40 during the late Asian trading session on Thursday. The pair trades sideways as investors await Federal Reserve (Fed) Chair Jerome Powell’s speech at the on Friday.

Investors will pay close attention to Fed Powell’s speech to get cues about whether the United States (US) central bank will cut interest rates in the September policy meeting.

In Thursday’s session, the US Dollar will be influenced by the preliminary US S&P Global PMI report for August, which will be published at 13:45 GMT. During the press time, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, wobbles near 98.30.

In Japan, financial market participants will closely monitor the National Consumer Price Index (CPI) data for July, which is scheduled to be published in Friday’s Asian session. Economists expect the National CPI ex. Fresh Food to have grown moderately by 3%.

USD/JPY has been trading sideways in a range between 146.22 and 148.52 from almost three weeks. The pair trades close to the 20-day Exponential Moving Average (EMA) around 147.56, indicating a sideways trend.

The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, suggesting indecisiveness among market participants.

The pair would see more upside to near the psychological level of 150.00 and the March 28 high of 151.20 if it breaks above the July 16 high of 149.19.

On the flip side, a reversal move by the pair below the July 24 low of 145.85 would pave the way for the July 7 low at 144.22, followed by the July 3 low of 143.45.

USD/JPY daily chart