Dollar buying has been restrained ahead of the latest US inflation data, and USD/JPY has been trading with limited upside. The market is increasingly adopting a wait-and-see stance as it awaits the data.
The European and US FX outlook indicates that USD/JPY is unlikely to rise rapidly, with expectations for range-bound trading continuing. The market is expected to remain in a wait-and-see mode ahead of the release of US inflation data.
Investors may assess the strength of dollar buying depending on the data, and short-term moves are expected to be influenced by the direction of US inflation.