The USD/JPY pair has shown resilience following the release of positive US Non-Farm Payrolls data, bouncing back from a weekly low of 147.35. This movement comes as the currency pair navigates a complex economic landscape, with the upcoming US Consumer Price Index (CPI) report poised to play a crucial role in shaping market direction.
Recent Federal Reserve communications suggest a potential shift towards a more balanced monetary policy approach. Market participants are closely watching for signs of easing inflation, which could influence the Fed’s decision-making process regarding future interest rate adjustments.
The CPI data, expected to show a slight decrease in headline inflation while core inflation remains stable, will be pivotal in determining the Fed’s next moves. A decline in inflation might accelerate the path to policy neutrality, while persistent price pressures could prompt a more cautious stance.
From a technical standpoint, USD/JPY’s recent performance indicates bullish momentum, having cleared several key levels. However, the pair may face resistance around the 150.89 mark, corresponding to the August high.
As global economic conditions continue to evolve, traders and investors are keeping a close eye on these economic indicators and central bank signals. The interplay between inflation data, Fed policy, and market reactions will likely shape the USD/JPY’s trajectory in the coming weeks.
USD/JPY Rebounds Post-NFP, CPI Report in Focus
