The USD/JPY pair has risen above 144.00, driven by a stronger US Dollar (USD) following the release of mixed US Purchasing Managers’ Index (PMI) data for September.
US PMI Data
The US Composite PMI expanded at a slower pace in September, with a decline in manufacturing activity offset by growth in the services sector.
Fed Interest Rate Outlook
The US Dollar is supported by expectations that the Federal Reserve (Fed) will continue its monetary policy easing cycle. While the Fed is expected to cut interest rates further, the pace of cuts remains uncertain.
BoJ Monetary Policy
The Bank of Japan (BoJ) is expected to provide guidance on its interest rate outlook in the upcoming speech by Governor Kazuo Ueda. The BoJ has maintained a dovish stance, suggesting that interest rate hikes may be gradual.
Technical Analysis
The USD/JPY pair has broken above a key resistance level, indicating a potential bullish trend. However, the pair’s near-term direction will depend on the Fed’s monetary policy decision and the BoJ’s guidance.
