Anna 
The USD/JPY pair edges lower to near 150.00 during the Asian session on Monday, following a volatile session in the previous trading day. The Japanese Yen (JPY) is buoyed by positive Machinery Orders data from Japan, while the pair initially surged on better-than-expected Producer Price Index (PPI) data from the United States on Friday. However, gains were trimmed after dovish remarks on the Federal Reserve’s (Fed) policy from James Bullard, former president of the St. Louis Fed.
Japan’s Machinery Orders (MoM) exceeded expectations by rising 2.7% in January, rebounding from the previous decline of 4.9%. The year-over-year (YoY) figure improved to -0.7%, beating the anticipated -1.4% and the previous decline of -5.0%. These encouraging figures suggest improved business confidence in Japan’s manufacturing sector.
Over the weekend, Japanese Finance Minister Shunichi Suzuki commented in an interview that while the Bank of Japan (BoJ) holds jurisdiction over monetary policy, there will be a phase when interest rates go up.
On the global front, James Bullard’s dovish stance at the National Association for Business Economics (NABE) conference has influenced market sentiment. Bullard suggested that the Federal Reserve should consider reducing interest rates at its March meeting to prevent stifling economic activity due to higher rates.
The US Producer Price Index (PPI) released on Friday showed a year-over-year growth of 0.9%, surpassing the expected 0.6% and the previous 1.0%. The month-on-month improvement was 0.3%, contrasting the previous decline of 0.1%. However, the preliminary Michigan Consumer Sentiment Index rose to 79.6 from the prior 79.0, falling short of the anticipated reading of 80.0.
With US banks closed for the President’s Day holiday, the market expects minimal movement in the US Dollar, contributing to the stability of USD/JPY near the 150.00 level.
