USD/JPY

The USD/JPY pair steadies around 158.50 during the Asian trading hours on Tuesday. Traders prefer to wait on the sidelines ahead of Japan’s National Consumer Price Index (CPI) inflation data later on Friday.

Japanese Finance Minister (FM) Satsuki Katayama said on Tuesday that there are no decisions made on funding expected defense spending increase. Katayama added that the government will consider measures to ensure stable funding while focusing on fiscal sustainability.

Brown Brothers Harriman's Ellias Haddad expects Japan’s September Consumer Price Index (CPI) to edge higher but remain below the Bank of Japan’s (BoJ) 2026 projection, limiting pressure for rapid tightening.

The Japanese Yen (JPY) is down against its major currency peers at the start of the week. In the European trade, the US Dollar (USD) is up 0.17% at around 158.25 against the Asia-Pacific currency.

United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann observe that USD/JPY held within 157.67–158.33 on Friday, closing almost unchanged at 157.99. Short-term momentum is tilting lower, with scope to test 157.50, though a decisive break below that level is not expected.

The USD/JPY pair trades on a flat note around 158.00 during the early European session on Monday. Traders scale back Federal Reserve (Fed) rate hike bets despite hot US inflation data. The Japan’s National Consumer Price Index (CPI) inflation data will take center stage later on Friday.