USD/JPY eyes Tokyo CPI as BOJ September hike bets firm on Himino remarks

USD/JPY trades with a downside bias into the Tokyo CPI release, the marquee Asian data point of the session and a key input for Bank of Japan September rate hike expectations. July's Tokyo core CPI accelerated to 1.90% year-on-year from 1.60% in June, a six-month high that beat consensus and reinforced the hawkish tilt in BOJ communications. Deputy Governor Himino has since signalled scope for further hikes and flagged growing upside inflation risks, while declining to comment directly on market pricing for the next move. A repeat upside surprise in the Tokyo print would harden September tightening odds and pressure USD/JPY lower, with EUR/JPY and AUD/JPY also vulnerable to yen strength. A softer read would ease the urgency and allow carry-driven yen selling to resume. Traders should watch the 146.50-147.00 zone as near-term USD/JPY support, with resistance capping rallies around 149.50-150.00. Expect elevated intraday volatility around the release given thin Asian liquidity.