Daiwa Securities: Economic Data Will Determine USD/JPY Direction

According to Jin10, Daiwa Securities strategist Kenta Tadaide said economic fundamentals remain the key factor determining the direction of USD/JPY. After U.S. inflation data are released this week, the Federal Reserve and the Bank of Japan will hold policy meetings next week. "If faster U.S. inflation prompts the Fed to take a tighter monetary policy stance, it could support the dollar; while rising market expectations for further Bank of Japan rate hikes could intensify upward pressure on the yen."