USD/JPY eyes 149.50 support ahead of Japan PPI data release

USD/JPY consolidated near 150.20 during Asian hours as traders positioned ahead of Japan's Producer Price Index release, expected to show 2.8% year-over-year growth. The yen found modest support from expectations that rising wholesale inflation could prompt more hawkish Bank of Japan rhetoric, potentially accelerating their gradual policy normalization. However, broad dollar weakness following soft US CPI data continues to weigh on the pair, which has declined 1.5% from last week's high of 152.40. Technical analysis shows USD/JPY testing the 150.00 psychological level, with a break below targeting 149.50 (61.8% Fibonacci retracement). Resistance stands at 150.80 (previous support turned resistance). Market participants remain cautious as any PPI surprise could trigger volatility, particularly if the data strengthens the case for BoJ action. Australian and New Zealand data releases are expected to have minimal impact on major pairs during the session.