- USD/JPY climbed on Wednesday as JPY continues to sell off.
- Yen traders looking ahead to Tokyo CPI inflation on Friday.
- US GDP, PCE inflation key data this week for rate-cut hopefuls.
USD/JPY drifted into the high end on Tuesday, testing towards 157.40 as broad-market weakness in the Japanese Yen (JPY) sends Yen pairs broadly higher. Japanese Tokyo Consumer Price Index (CPI) inflation remains a key print for Yen traders this week, with US growth and inflation figures a high-impact release for investors looking for signs of rate cuts from the Federal Reserve (Fed).
Yen traders will be looking ahead to Friday’s Japanes Tokyo CPI inflation, and Core Tokyo CPI inflation is broadly expected to climb to 1.9% from 1.6%. The Bank of Japan (BoJ), concerned about a return to sub-target inflation, has steadfastly avoided raising interest rates, keeping the Yen’s rate differential with other major central banks much higher than before, sending the JPY even lower despite possible “Yenterventions” in recent weeks.
US Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) Price Index inflation, due on Thursday and Friday, respectively, are key prints this week as investors continue to look for signs of Fed rate cuts. US Annualized Q1 GDP is expected to ease to 1.3% from the previous 1.6%, while Core PCE Price Index inflation is forecast to hold steady at 0.3% MoM.
USD/JPY technical outlook
USD/JPY continues to drift into the top end, approaching the 158.00 handle after closing in the green for all but four of the last 17 consecutive trading days. Bullish pressure is keeping the pair pinned deep in bull country, trading firmly on the north side of the 200-day Exponential Moving Average (EMA) at 148.89.
USD/JPY daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats below 1.1250, markets await comments from Fed policymakers
EUR/USD struggles to preserve its bullish momentum and retreats below the 1.1250 area in the second half of the day on Tuesday. The cautious market mood and the modest USD rebound weigh on the pair as investors await comments from Federal Reserve officials.
GBP/USD pulls away from daily highs, trades below 1.3350
GBP/USD declines after rising toward 1.3400 earlier in the day and trades below 1.3350 in the American session. The US Dollar holds its ground following Monday's slide, causing the pair to stretch lower. Ahead of Wednesday's UK inflation data, investors will pay close attention to comments from central bankers.
Gold clings to small daily gains above $3,200
Gold fluctuates in a narrow channel above $3,200 on Tuesday after posting small gains to start the week. While the risk-averse market atmosphere helps XAU/USD hold its ground, the Fed's cautious tone on policy easing doesn't allow the pair to gain traction.
Bitcoin fails to reach all-time high despite building institutional and state support
Bitcoin price stabilizes around $105,200 on Tuesday, just 4% shy of its all-time high at $109,588. JPMorgan CEO Jamie Dimon says the bank will let clients buy Bitcoin.The Texas House is set to conduct a second reading of a bill that, if passed, would establish a Bitcoin Reserve.
China April slowdown shows the impact of economic uncertainty
Trade war uncertainty is denting Chinese confidence, resulting in slower economic activity in April. Retail sales and fixed-asset investment both underperformed forecasts amid heightened caution. Yet the impact on manufacturing was less than feared.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.