USD/JPY Consolidates Below 154.00 Following Strong US Economic Data

USD/JPY is trading in a tight range just below the 154.00 psychological level, up 0.2% at 153.85, as strong US economic data continues to support the dollar. Recent US indicators, including better-than-expected retail sales and industrial production figures, have reinforced expectations that the Federal Reserve may maintain a hawkish stance longer than previously anticipated. The pair found resistance at 154.00, a level that has proven significant in recent sessions, while support emerged at 153.50. Japanese yen weakness persists despite the Bank of Japan's gradual policy normalization efforts, with yield differentials continuing to favor the dollar. Technical indicators suggest consolidation may continue, with the 50-day moving average at 153.20 providing additional support. Traders are positioning ahead of Friday's US PCE inflation data, which could provide the catalyst for a breakout above 154.00 or a deeper correction toward 152.50.