USD/JPY trades around 157.65 on Tuesday at the time of writing, up 0.30% on the day.
The pair benefits from renewed strength in the US Dollar (USD) after stronger-than-expected inflation data from the United States (US), while the Japanese Yen (JPY) limits gains amid persistent intervention concerns from Japanese authorities
The Bureau of Labor Statistics (BLS) reported that inflation, as measured by the Consumer Price Index (CPI), accelerated to 3.8% YoY in April from 3.3% previously, above market expectations of 3.7%. On a monthly basis, the CPI rose 0.6%, in line with forecasts. Core inflation, which excludes volatile food and energy prices, increased to 2.8% YoY from 2.6% previously, also exceeding the 2.7% consensus.
The report also noted that energy prices rose 3.8% in April, accounting for more than 40% of the monthly increase in the overall index. Shelter and food costs also continued to rise, reinforcing concerns about persistent inflationary pressures in the US. Meanwhile, weekly ADP data showed that US private employers added an average of 33K jobs per week over the four weeks ending April 25, signaling a modest improvement in labor market momentum.