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The USD/JPY outlook points to a stronger dollar as traders await the outcome of a meeting between Trump and Zelensky. At the same time, market participants were gearing up for the Jackson Hole symposium.

Market participants are anticipating a crucial meeting between Trump and Zelensky that could mean progress towards peace in Ukraine. The US president met Russian President Putin on Friday to talk about the war. Putin is ready for a peace deal if Ukraine will agree to the terms. Therefore, Trump will try to get Zelensky to agree to the terms and quickly end the war. 

Meanwhile, Powell will speak at the Jackson Hole Symposium and might drop clues about future policy moves. However, experts believe he might not give a clear signal of the next rate cut.

“The US central bank might cut rates in September, but it’s unlikely that the Fed chair will give a clear signal towards that later this week,” said Lee Hardman, senior currency analyst at MUFG Bank.

“It’s probably too early for them (the Fed) to have complete confidence that they can cut rates again,” he said.

USD/JPY key events today
 

Market participants do not expect any key releases from the US or Japan. All focus will remain on the meeting between Trump and Zelensky.

USD/JPY technical outlook: Bulls face the 30-SMA resistance
 

USD/JPY daily chart
 

On the technical side, the USD/JPY price is challenging the 30-SMA resistance line. Meanwhile, the RSI has broken above 50, showing stronger bullish momentum. However, there is no clear direction, as the price has maintained a sideways move since its impulsive bearish leg.

In this time, the price has chopped through the 30-SMA with no clear pattern for the highs and the lows. Therefore, it is a corrective move that might soon lead to an impulsive one. 

At the moment, the nearest resistance is at the 148.00 level. Meanwhile, the nearest support is at the 146.00 level. If bulls regain momentum, the price will likely break above the SMA and the nearest resistance. This would allow USD/JPY to retest the 150.01 level. On the other hand, if bears win, the price will challenge and break below the 146.00 level.

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