USD/JPY Trapped at 146.50 Ahead of Key US PCE Inflation Data

USD/JPY continues to consolidate in a tight range around 146.50, with traders reluctant to take directional positions before Friday's US PCE inflation release. The pair has been confined between 146.00 support and 147.00 resistance for the past week, reflecting uncertainty over the Federal Reserve's rate trajectory. Japanese yen strength has been limited despite Bank of Japan's hawkish stance, as yield differentials continue to favor the dollar. Technical indicators show neutral momentum, with the RSI hovering near 50 and moving averages converging. A break above 147.00 could trigger stops and accelerate gains toward 148.00, while failure below 146.00 might open the path to 145.00. The PCE data will be crucial, with a higher-than-expected reading likely supporting USD/JPY bulls, while softer inflation could reignite yen buying interest.