USD/JPY Remains Stuck in a Narrow Range, What Will Happen Next?
The USD/JPY currency pair remained in tight consolidation on Wednesday (August 27th), moving in the 147.00–148.00 range, amidst heated global sentiment. Market participants are now awaiting the release of important US economic data and policy signals from the Bank of Japan (BoJ), which could trigger major movements.
Expectations that the Federal Reserve will cut interest rates at its upcoming meeting are weighing on the dollar. Meanwhile, political tensions in the US, including the issue of central bank independence following Trump's feud with Fed officials, are increasing market volatility.
Japan's core inflation rate of 3.4% has fueled speculation that the BoJ will take more aggressive tightening measures. If this scenario occurs, the yen could strengthen further against the dollar.
JP Morgan Projection: Yen Could Strengthen in 2026
JP Morgan's latest report shows revised projections for the yen, with USD/JPY predicted to reach 146 this quarter and fall to 139 by mid-2026.
Currently, USD/JPY is stuck in the 146.20–148.51 range. If the price breaks through 148.76, the market could potentially retest 150.90. Conversely, a decline below 146.20 would open the door to 142.667.
Investors' focus is now on US PCE data and Japan's inflation report. These data will be the main catalysts for USD/JPY movement in the coming days.
Source: Newsmaker.id