USDJPY is looking for an upward break as attention moves to US inflation

The USDJPY is trying for an upward breakthrough ahead of the publication of US inflation data.

In the last three trading sessions, the USDJPY pair has been attempting a consolidation breakout in a range of 134.69-135.36. The major is likely to stay active ahead of the publication of US inflation data in April.

After a negative Tuesday, S&P500 futures are showing small increases, indicating a minor comeback in risk appetite. However, the overall market sentiment remains cautious, as investors are concerned about the US Consumer Price Index (CPI).

During the discussion, US President Joe Biden said unequivocally that a US economic default is not an option.

The US Dollar Index (DXY) has resumed its decline after falling from 101.70 after the US debt ceiling discussions failed to reach an agreement, and the White House and Republican leaders will meet again on Friday. US Vice President Joe Biden underlined the need to raise the debt cap without jeopardizing the expenditure budget, but is prepared for a separate budget negotiation.

During the discussion, he made it plain that a US economic default is not an option. A clear debt ceiling law is unlikely to pass, and both parties are likely to compromise on a bipartisan accord.

Fed Williams sees no cause to lower rates this year and has supported for more rate rises if necessary.

Meanwhile, New York Federal Reserve (Fed) Bank President John Williams stated that the central bank’s monetary policy must be data-dependent, and that the Fed will hike rates again if necessary. He also stated that the Fed has not stated that it is done rising rates and sees no cause to lower rates this year.

In terms of the Japanese Yen, Bank of Japan (BoJ) Governor Kazuo Ueda highlighted the impact of recent bank collapses in the United States and Europe on Japan’s financial system is expected to be modest.” In terms of inflation guidance, BoJ Ueda stated that Japan’s inflation expectations have risen and continue to rise.

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