Investors hold positions ahead of key US retail data and high-stakes trade discussions between US and Chinese leaders.
The USD/JPY pair remains unchanged at 157.85 in early Asian trading on Thursday. Market participants are adopting a cautious stance before the US-China summit and April US Retail Sales figures due later today.
US inflation data exceeded expectations, with the Producer Price Index surging 6.0% year-on-year in April, up from 4.3% in March. Monthly PPI inflation rose to 1.4%, well above the 0.5% estimate, reinforcing expectations of prolonged high US interest rates.
Traders are also monitoring potential currency intervention by Japanese authorities, which could cap further gains in the pair. Japan’s Finance Minister recently emphasized close coordination with the US on currency movements.