US inflation came in higher than expected in August. Markets expect the Fed to deliver a 75bps rate hike. Inflation in Japan is starting to rise. The USD/JPY weekly forecast is bullish as dollar strength continues, with the Federal Reserve raising rates by 75bps. The BoJ, on the other hand, is expected to maintain low rates and keep the yen down. –Are you interested to learn more about Forex demo accounts? Check our detailed guide- Ups and downs of USD/JPY The pair rose sharply on Tuesday after US consumer prices unexpectedly increased in August, and underlying inflation accelerated amid rising rent and healthcare expenses. This provides the Federal Reserve grounds for raising interest rates by another 75 basis points on Wednesday. Inflation has likely not peaked due to a robust labor market and high wage growth, which will keep the Fed on an aggressive monetary policy course for some time. Next week’s key events for USD/JPY The BoJ may soon go further and state that strong price increases will become faster than anticipated for the remainder of this year, fueled partly by the yen’s decline to 24-year lows. The central bank no longer implies that strong price increases will be temporary. The implication is that the nation’s ultra-easy monetary policy, which keeps both short- and long-term interest rates close to zero, may not last as long as forecasters believe. Consumers’ expectations for inflation are also rising, and price increases in a nation with a deflation history affect goods that are not directly impacted by rising fuel prices. Get FREE Forex Signals Now! “The Fed is all but sure to hike rates aggressively next week, likely by 75 basis points while pushing back strongly against talk of a near-term pause in the tightening cycle,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. USD/JPY weekly technical forecast: Pullbacks limited above 140.00 Looking at the daily chart, we see the price pulling back toward the 22-SMA in an uptrend. The RSI is trading above 50, favoring bullish momentum. The price found solid resistance at 145.043, at which point sellers took over. The RSI made a bearish divergence showing exhaustion in the move up. –Are you interested to learn more about CFD brokers? Check our detailed guide- However, this bearish move has little future below the 140.064 support level, coinciding with the 22-SMA to make a strong support zone. If the price gets to this support zone, it will likely bounce back up to retest the 145.043 resistance level and possibly break above. Looking to trade forex now? Invest at eToro! Trade Forex Now! 68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal USD JPY Forecast share Read Next EUR/USD Forecast: Hawkish Fed Pushing Price Below Parity Saqib Iqbal 2 days US inflation came in higher than expected in August. Markets expect the Fed to deliver a 75bps rate hike. Inflation in Japan is starting to rise. The USD/JPY weekly forecast is bullish as dollar strength continues, with the Federal Reserve raising rates by 75bps. The BoJ, on the other hand, is expected to maintain low rates and keep the yen down. -Are you interested to learn more about Forex demo accounts? Check our detailed guide- Ups and downs of USD/JPY The pair rose sharply on Tuesday after US consumer prices unexpectedly increased in August, and underlying inflation accelerated amid rising… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.