Yen Flat, Focus on Data Releases
USD/JPY held around 147.6 on Wednesday, moving sideways as the market awaited a series of data that could shape Bank of Japan (BOJ) policy expectations. Investors tended to be cautious while assessing the yen's next direction.
Later this week, Japan releases industrial production, retail sales, and consumer confidence. Strong results could reinforce the view that inflation and domestic activity are resilient—boosting expectations of gradual BOJ tightening. Conversely, sluggish data risks curbing yen strength.
From the central bank, Governor Kazuo Ueda said wages are expected to continue rising amid a tight labor market—signaling conditions for another interest rate hike are forming. At its July meeting, the BOJ left interest rates unchanged but raised its inflation projections and offered a more optimistic economic outlook.
External factors remain a looming threat: renewed concerns about the Fed's independence after US President Donald Trump announced plans to dismiss Governor Lisa Cook. Fragile global sentiment could support the yen in safe-haven flows, but the ultimate direction will be determined by Japanese domestic data and the US inflation (PCE) release later this week. (ayu)
Source: Newsmaker.id
