USD/JPY jumps to near 145.00 as US Dollar bounces back strongly

• USD/JPY rises to near 145.00 as the US Dollar recovers strongly.
• Upbeat US Consumer Confidence eases US hard landing fears.
• Investors await the Tokyo CPI and the US core PCE inflation for July.

The USD/JPY pair climbs to near 145.00 in Wednesday's North American session. The asset strengthens as the US Dollar (USD) delivers a strong recovery move after posting a fresh annual low. The USD rebounds as upbeat United States (US) Consumer Confidence data for August diminished fears of a hard landing.

Market experts started anticipating a hard landing for the US economy after the US Nonfarm Payrolls (NFP) report for July showed a slowdown in labor demand and a significant increase in the Unemployment Rate. The hard landing is a scenario in which the economy enters a recession in an attempt to bring inflation down to the bank's target.

US Conference Board showed on Tuesday that Consumer Confidence rose to 103.30 in August, beating expectations of 100.7. The sentiment indicator exhibits the confidence of individuals in the economic prospects.

Meanwhile, the market sentiment appears to be risk-off as investors turn cautious ahead of the US core Personal Consumption Expenditure price index (PCE) data for July, which will be published on Friday. The S&P 500 has posted nominal losses in the North American session. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, recovered strongly above 101.00 from a fresh annual low of 100.50.

The underlying inflation data is expected to influence market speculation for the Federal Reserve (Fed) interest rate cut path. Financial markets currently expect that the Fed will begin reducing interest rates from the September meeting. Traders remain split over the likely rate-cut size.

On the Japanese Yen (JPY) front, investors await the Tokyo Consumer Price Index (CPI) data for August, which will be published on Friday. The data is expected to show that Tokyo CPI excluding Fresh foods rose steadily by 2.2% in August. The inflation data will influence market speculation for the Bank of Japan's (BoJ) interest rate hike path.