USD/JPY could surge beyond 150.90 February high on easing price pressures in Japan – ING

Japan’s inflation data for January will be released on Tuesday. Economists at ING analyze the Japanese Yen (JPY) outlook ahead of the Consumer Price Index (CPI) report.

Inflation may fall below 2.0% and hit the Yen

In Japan, Tokyo’s CPI numbers for January are expected to show both headline and core inflation moving to 1.9%, falling under the 2.0% Bank of Japan target for the first time since March 2022. 

This may well prompt markets to price out a June hike and add buying pressure to USD/JPY beyond the 150.90 February highs and potentially test the 151.00/152.00 November highs.