Tight labor market conditions could support wage growth and increase disposable income. Higher disposable income may fuel consumer spending and demand-driven inflation.

Other stats include housing sector data. However, these will likely play second fiddle to the GDP and labor market numbers.

Beyond the numbers, Fed commentary needs consideration. Reactions to recent US economic data, views on inflation, and the Fed rate path could move the dial. Fed Vice Chair John Williams and FOMC member Lorie Logan are on the calendar to speak.

Short-term Forecast

Near-term trends for the USD/JPY may depend on the Japanese and US inflation figures. However, BoJ and Fed chatter could also influence near-term price trends in the USD/JPY pairing. Moreover, investors should consider the implications of a weaker Yen on BoJ policy goals.

USD/JPY Price Action

Daily Chart

The USD/JPY sat well above the 50-day and 200-day EMAs, confirming the bullish price trends.

A USD/JPY breakout from the 157.5 handle could give the bulls a run at the 160 handle. Furthermore, a return to 160 could signal a move to the April 29 high of 160.209.

US GDP, initial jobless claims, and central bank comments need consideration before the Friday session.

Conversely, a USD/JPY fall through the 157 handle could signal a drop toward the 50-day EMA. A break below the 50-day EMA could give the bears a run at the 151.685 support level.

The 14-day RSI at 64.39 indicates a USD/JPY climb to the April 29 high of 160.209 before entering overbought territory.