USD/JPY faces pressure near 150.00 as US Dollar’s rally halts

USD/JPY encounters offers near 150.00 as the US Dollar struggles to extend its upside further.
Traders priced out the Fed's larger-than-usual size of 50 bps interest rate cut in November.
Japan’s National core CPI accelerated to 2.1% in September.

Sagar Dua FXStreet

The USD/JPY pair faces selling pressure near the psychological resistance of 150.00 in Friday’s North American session. The asset drops as the three-week rally in the US Dollar (USD) appears to have halted, however, its outlook remains upbeat. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, declines from the 10-week high of 103.90 to near 103.50.

Market sentiment appears to be cheerful as Democratic Kamala Harris leads national polls against Republican Donald Trump by a slight margin. S&P 500 futures have posted significant gains in the early New York session. 10-year US Treasury yields slump to near 4.086%.

The outlook of the US Dollar remains firm as investors expect the Federal Reserve (Fed) to follow a moderate interest rate cut path. Traders have priced out Fed large rate cut bets for November as a slew of upbeat United States (US) data has pointed to economic resilience.

According to the CME FedWatch tool, 30-day Federal Funds futures pricing data shows that there will be a 50 basis points (bps) decline in interest rates in the remaining year, suggesting that the Fed will cut its borrowing rates by 25 bps in November and December.

On the Tokyo front, Japan’s National core Consumer Price Index (CPI) – which excludes volatile food and energy prices – rose by 2.1% in September, faster than 2% in August. Higher inflationary pressures have kept the Bank of Japan (BoJ) on track to hike interest rates further this year.

Economic Indicator

National CPI ex Food, Energy (YoY)

Japan’s National Consumer Price Index (CPI), released by the Statistics Bureau of Japan on a monthly basis, measures the price fluctuation of goods and services purchased by households nationwide. The YoY reading compares prices in the reference month to the same month a year earlier. The gauge excluding food and energy is widely used to measure underlying inflation trends as these two components are more volatile. Generally, a high reading is seen as bullish for the Japanese Yen (JPY), while a low reading is seen as bearish.

EUR/USD looks apathetic around 1.1770

EUR/USD comes under renewed pressure on Tuesday, deflating below the 1.1800 support and reversing two consecutive days of gains. The pair’s decline follows the persistent move higher in the US Dollar, as trade uncertainty dominates the sentiment ahead of President Trump’s SOTU speech.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Ripple’s DeFi shift in focus: Navigating XRPL EVM sidechain growth, XRPFi migration and liquidity

Ripple (XRP) has continued to trade under pressure, extending its decline by approximately 63% from the record high of $3.66 in July. The remittance token is trading above support at $1.35, while its upside appears limited by key supply zones, starting with $1.40, at the time of writing on Tuesday.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.