The USD/JPY pair is under pressure as Japan’s CPI data surprises to the upside once more. This scenario raises questions about the Bank of Japan’s (BOJ) ability to maintain its current monetary policy amidst increasing inflationary pressures. Moreover, geopolitical issues and rising oil prices are contributing to the upward movement of USD/JPY.

Given these factors, market participants are now reconsidering their expectations for the BOJ’s future actions. As inflation numbers continue to dominate headlines, the USD/JPY may witness heightened volatility.