USDJPY: Yen Strengthens Ahead of Japan Data and U.S. InflationUSD/JPYOANDA:USDJPYProfessorSingaporeUSDJPY is trading near 154.48 after breaking below the key 155.00 level and extending its decline to the lowest area since February. The yen has strengthened as markets reprice the outlook for the Bank of Japan, with expectations of further tightening, capital repatriation and carry-trade unwinding supporting the currency. The next catalyst comes later today with Japan’s Current Account and final Q2 GDP data. The market expects a return to a current-account surplus of around ¥2.87T, while final GDP is forecast at 0.4% QoQ and 1.1% annualised. A stronger-than-expected result would reinforce BOJ tightening expectations and could add further pressure on USDJPY. Weak data, especially a disappointing current-account figure, may trigger a technical rebound after the sharp sell-off. The U.S. dollar side remains important as well. Friday’s U.S. CPI report will be the next major Fed catalyst. A hot inflation print could lift Treasury yields and support a USDJPY recovery, while softer CPI would likely keep the yen bid. USDJPY remains clearly bearish. MACD is negative, confirming downside momentum. RSI is near 27, which shows oversold conditions. This raises the probability of a short-term bounce, but does not change the bearish structure by itself. Possible price movement If Japan’s data beats expectations and USDJPY closes below 154.47, sellers may target 154.05–154.00 first, followed by 153.50. If the data disappoints, the pair may attempt a technical rebound toward 154.83 and 155.28. However, buyers need to recover 155.78 to improve momentum. A move above 156.51 would weaken the bearish setup. Key idea: USDJPY is under pressure from a stronger yen, not only from a weaker dollar. Tonight’s Japanese data will test whether the move below 155.00 becomes a deeper trend or only a temporary oversold extension. ⚠️ Not financial advice.