Soaring government bond benefits continue to dominate the pair's price action. Investors still need to watch out for Japan which will likely rate closer to 150.
USD/JPY fell near 148.80, but quickly recovered to around 149.50 as the Bank of Japan (BoJ) is expected to announce its inflation forecast for fiscal years 2023 and 2024 earlier.
On Tuesday, Bloomberg forecast the BoJ's new core CPI for fiscal 2023 could reach 3%, up from 2.5% in July and more than 2% for fiscal 2024. Inflation Forecast higher shows that the BoJ is confident ahead of salary increase negotiations next spring.