Ella 
USD/JPY rose to highs on Tuesday, testing 157.40 as broad yen weakness pushed the yen pair higher. Tokyo Consumer Price Index (CPI) inflation remains the key data for yen traders this week, while US economic growth and inflation data are important for investors to look for signals of a rate cut from the Federal Reserve (Fed).
Yen traders will focus on Tokyo CPI inflation on Friday, with Tokyo core CPI inflation widely expected to climb to 1.9% from 1.6%. The Bank of Japan (BoJ) has been steadfast in avoiding rate hikes, fearing inflation returning to below target, leaving the yen with a much wider spread than before with other major central banks, and the yen has remained lower despite signs of possible “Japanese authorities intervention” in recent weeks.
US GDP and US PCE price index will be released on Thursday and Friday respectively, as investors will continue to look for signs of a rate cut from the Federal Reserve. US GDP is expected to slow to 1.3% on an annual basis in the first quarter from 1.6% previously, while core PCE price index inflation is expected to remain steady at 0.3% on a monthly basis.
