USD/JPY gains traction above 149.60 amid the renewed USD demand, US Retail Sales looms

The USD/JPY pair holds positive ground around 149.60 during the early European trading hours on Tuesday. A renewed US Dollar (USD) demand and a recovery in US treasury yields lend some support to the pair. Investors await the US Retail Sales data on Tuesday for fresh impetus. The monthly figure is expected to rise by 0.3% in September.

The dovish comments from the Federal Reserve (Fed) capped the upside of the USD/JPY pair on Tuesday. Chicago Fed President Austan Goolsbee maintained his dovish stance by saying that a fall in US inflation is not a bleep, while Philadelphia Fed President Patrick Harker said that in the absence of some turn in the data, the Fed should hold rates steady. However, traders will take more cues from the Fed speakers on Tuesday, which include Williams, Bowman, Barkin, and Kashkari, which might offer some hints about further monetary policy paths.

About the data, the US NY Empire State Manufacturing Index for October fell to 4.6 from a 1.9 rise in the previous reading, above the market estimation of a 7.0 decline. Last week, the US Consumer Price Index (CPI) annually and monthly for September came in at 3.7% and 0.4%, respectively. Both figures exceeded the market expectations.

On the JPY, Japanese Finance Minister Shunichi Suzuki denied to comment on Tuesday's statements about currency intervention by an International Monetary Fund (IMF) official. Suzuki went on to say that there was no need to go into detail about the factors that would

Looking ahead, market players will keep an eye on the US Retail Sales, Industrial Production, and Fed speakers later on Tuesday. On Wednesday, the Japanese trade data will be released, followed by the National Consumer Price Index (CPI) reports on Friday. These figures could give a clear direction to the USD/JPY pair.