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USD/JPY Edges Higher Amid Bearish Cautiousness Ahead of US Inflation Data

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The USD/JPY pair edged higher during the Asian session on Thursday and traded just above mid-153.00s amid bears turning cautious ahead of US inflation figures.

Spot prices, however, remain close to a seven-month low, touched earlier this week, as an aggressive repricing for a more hawkish Bank of Japan continues to underpin the Japanese Yen.

Traders now seem to have fully priced in a 25-basis-point interest rate hike by the BoJ at its upcoming September 17-18 policy meeting and are assigning a high probability of a follow-up move in December.

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