USD/JPY remains under pressure near 150.50 as US core PCE Inflation heats up
- USD/JPY continues to face selling pressure even though the US core PCE inflation for February came in higher-than-expected.
- Investors brace for reciprocal tariffs from the US to be unveiled by President Donald Trump next Wednesday.
- Hotter-than-expected Tokyo CPI data has strengthened the Japanese Yen.
The USD/JPY pair is down more than 0.3% near 150.50 in the North American session on Friday. The pair remains on the backfoot even though the United States (US) core Personal Consumption Expenditure Price Index (PCE) data for February has come in hotter-than-expected. The US core PCE Inflation – which excludes volatile food and energy items – rose at a faster pace of 2.8% year-on-year compared to estimates and the prior release of 2.7%.
The Federal Reserve (Fed) also anticipated its preferred inflation gauge to average at 2.8% by the year-end in the last week’s monetary policy meeting in which it left interest rates in their current range of 4.25%-4.50% and guided that they are not in a hurry to make adjustments due to lack of clarity on US President Donald Trump’s tariff agenda.
Hotter-than-projected US core PCE inflation data is expected to boost expectations for the Fed to hold borrowing rates at their current levels for an extended period.
Meanwhile, investors brace for the announcement of reciprocal tariffs by US President Trump on Wednesday. Trump is poised to unveil a detailed tariff plan for all his trading partners to fix the bloated trade deficit. Market participants expect Trump's tariffs to result in an economic slowdown and a resurgence in inflationary pressures across the globe.
On the Japanese Yen (JPY) front, hot Tokyo Consumer Price Index (CPI) data for March has prompted expectations of more interest rate hikes by the Bank of Japan (BoJ) this year. Hot inflation data has also strengthened the Japanese Yen against its peers.
Japanese Yen PRICE Today
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the New Zealand Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.02% | -0.04% | -0.30% | 0.01% | -0.06% | 0.15% | 0.10% | |
| EUR | 0.02% | -0.03% | -0.33% | 0.02% | -0.05% | 0.15% | 0.10% | |
| GBP | 0.04% | 0.03% | -0.25% | 0.05% | -0.02% | 0.19% | 0.13% | |
| JPY | 0.30% | 0.33% | 0.25% | 0.32% | 0.25% | 0.46% | 0.41% | |
| CAD | -0.01% | -0.02% | -0.05% | -0.32% | -0.07% | 0.12% | 0.08% | |
| AUD | 0.06% | 0.05% | 0.02% | -0.25% | 0.07% | 0.21% | 0.14% | |
| NZD | -0.15% | -0.15% | -0.19% | -0.46% | -0.12% | -0.21% | -0.05% | |
| CHF | -0.10% | -0.10% | -0.13% | -0.41% | -0.08% | -0.14% | 0.05% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).
Tokyo CPI data rose by 2.9% in 12 months to March, faster than the 2.8% growth seen in February. Japan’s capitals CPI data – which excludes Fresh Food – accelerated by 2.4% against estimates and the former release of 2.2%.
Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
