USD/JPY Trends: US CPI Report in Focus
Later in the US session, the crucial US CPI Report could dictate the Fed’s rate path through Q2 2025. Economists forecast the annual core inflation rate to ease from 3.3% in January to 3.2% in February.
A larger-than-expected fall in core inflation could reinforce expectations of a June Fed rate cut. A more dovish Fed rate path may drag the USD/JPY pair below the March 11 low of 146.537. A drop below 146.537 could test support at 145.
A hotter-than-expected inflation reading may reduce expectations of a Q2 2024 Fed policy move. A more hawkish Fed rate path may drive the pair toward the 149.358 resistance level and potentially test 150.
