The USD/JPY pair remains steady around 154.00 ahead of the release of key US Retail Sales data, which could influence the Federal Reserve’s interest rate outlook. After weeks of minor fluctuations, investors are holding back significant moves, waiting for economic signals that could guide the Fed’s next steps.
Markets anticipate that the US Retail Sales figures will provide clarity on consumer strength amid inflation concerns. A stronger-than-expected reading could support further USD strength, raising expectations of prolonged high interest rates. Conversely, weaker data may fuel speculation about rate cuts, pressuring the USD/JPY lower. For now, the yen remains under pressure as the Bank of Japan shows little urgency to tighten its policy, keeping interest rate differentials in focus.
With market participants watching for signals, the US Retail Sales report will likely dictate the next direction for USD/JPY.
