The USD/JPY pair is currently in focus as traders await the release of US inflation data. This data release could potentially trigger a significant market move for the currency pair.
Investors are closely watching the US inflation data as it could impact the Federal Reserve’s monetary policy decisions. A higher-than-expected inflation rate could prompt the Fed to consider tightening its monetary policy, which could strengthen the US dollar against the Japanese yen.
On the other hand, a lower-than-expected inflation rate could lead to speculation that the Fed may delay raising interest rates, which could weaken the US dollar against the Japanese yen.
Traders are advised to closely monitor the US inflation data and be prepared for any potential market volatility that may follow. The outcome of this data release could have a significant impact on the direction of the USD/JPY pair in the coming days.