USD/JPY faces pressure as Tokyo CPI data looms ahead of BOJ meeting

USD/JPY is trading cautiously near 151.50 as markets await Friday's crucial Tokyo CPI release, a key inflation indicator that could influence the Bank of Japan's monetary policy stance. The Tokyo CPI serves as a reliable predictor for nationwide inflation trends and will be closely scrutinized ahead of the BOJ's December 18-19 meeting. Current market positioning suggests heightened sensitivity to any upside surprises in the inflation data, which could strengthen expectations for further BOJ policy normalization. Recent yen weakness has kept USD/JPY elevated above the 151.00 psychological level, though upside momentum remains limited by uncertainty over Japan's inflation trajectory. Technical indicators show immediate resistance at 152.00, while support lies at 150.80. A stronger-than-expected CPI reading could trigger yen appreciation and push USD/JPY toward the 150.00 handle, particularly if it reinforces speculation about potential BOJ action next month.