USDJPY outlook influenced by BoJ and FOMC decisions

The US dollar is facing pressure against major currencies, even with recent positive economic reports. The Core PCE estimates have risen following good Consumer Price Index (CPI) and Producer Price Index (PPI) data. Despite this, market expectations for Federal Reserve rate cuts have decreased slightly. The Fed is expected to keep interest rates steady in their upcoming meeting. In Japan, economic data has been weaker recently. Bank of Japan Governor Ueda has indicated that he is not rushing to raise interest rates. The Japanese yen has been influenced more by outside factors, such as falling US Treasury yields and shifting risk sentiment, rather than internal economic conditions. The Bank of Japan (BoJ) is also anticipated to make no changes at its policy meeting tomorrow. Analysis of the USD/JPY exchange rate shows it struggled to stay under a key level of 148.60 but is now back near an upward trendline. Sellers might target a drop to around 140.00, while buyers hope for a rise towards 160.00. On shorter timeframes, trends are showing bullish momentum, but there is uncertainty about the direction. Important economic events are coming up. The BoJ and Fed will announce their rate decisions tomorrow. Following that, US Jobless Claims figures will be released on Thursday, and Japan's CPI will come out on Friday. Traders will be closely monitoring these developments.