According to FXStreet, the USD/JPY pair weakened near 150.00 today, October 18, after the release of Japan's CPI inflation data. This shows that the Yen is gaining strength against the US Dollar.
Japan's annual CPI rose 2.5% in September, up from 3.0% in August, the Statistics Bureau said. The CPI excluding fresh food and energy rose 2.1% year-on-year, and the CPI excluding fresh food rose 2.4% year-on-year. That was slightly better than analysts' forecasts of 2.3%.
However, the slowing price growth may not have much impact on the policy of the Bank of Japan (BoJ). The BoJ is expected to keep interest rates unchanged on October 31.
Regarding future plans, BoJ Governor Kazuo Ueda said the bank could continue to raise interest rates if inflation stabilizes at its 2% target. The BoJ will also closely monitor global economic uncertainties and their impact on Japan's economic recovery.
“The BOJ is waiting to see how the U.S. economy performs before raising rates. We think they will be able to confirm a soft landing in the U.S. at the January meeting,” said Bloomberg Economics economist Taro Kimura.
On the USD side, US retail sales data for September beat expectations, suggesting the economy remained strong in the third quarter, which fueled the USD's solid gains.
According to the CME Fed Watch Tool, the market is currently pricing in a 90.3% chance of a 25 basis point cut next month.
According to Lao Dong, at 12:00 on October 18, the USD/JPY exchange rate is currently fluctuating between 149.86-150.29, down 0.15 percentage points compared to yesterday's session, meaning 1 USD is equivalent to about 150 Japanese Yen.
