USD/JPY Trends: Consumer Inflation Expectations in Focus
Later in the US session, consumer inflation expectation trends could influence US dollar demand. Economists forecast consumer inflation expectations to increase from 3% in January to 3.2% in February.
A higher-than-expected reading could temper bets on an H1 2025 Fed rate cut. A more hawkish Fed rate path may drive the USD/JPY pair toward the 149.309 resistance level, possibly testing 150.
Conversely, a lower inflation outlook might fuel speculation about a Fed rate cut in June, dragging the pair toward last week’s low of 146.935.
Beyond the inflation data, investors should monitor US tariff policy and FOMC members’ commentary on inflation, the labor market, and the Fed’s rate path.
