USD/JPY consolidates around 149.00 as traders look for fresh Federal rate cues

• USD/JPY trades sideways near 149.00 amid uncertainty over the Fed interest rate outlook.
• The Fed is expected to cut interest rates by 25 bps in November and December too.
• Investors will pay close attention to Japan's National CPI data for September.

The USD/JPY pair trades in a tight range near 149.00 in Wednesday's North American session. The asset consolidates as investors look for fresh cues about the Federal Reserve's (Fed) likely interest rate action in the remaining year.

Market sentiment remains risk-averse amid growing speculation that former US President Donald Trump could win presidential elections, which are scheduled on November 5. The S&P 500 trades cautiously in the opening session. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, trades in a tight range near a two-month high around 103.40.

According to the CME FedWatch tool, 30-day Federal Funds futures pricing data shows that the central bank will cut interest rates by 25 basis points (bps) in both policy meetings in November and December.

Lately, traders have priced out Fed large rate cut bets as a string of United States (US) data for September showed that economic prospects are not as bad as they appeared earlier. US Nonfarm Payrolls and the Services PMI grew at a robust pace, with inflationary pressures rising faster-than-expected.

On the Tokyo front, the Japanese Yen (JPY) has remained under pressure from a past few weeks as investors doubt about more rate hikes from the Bank of Japan (BoJ) in the remainder of the year. For fresh interest rate cues, investors will pay close attention to the Japan's National Consumer Price Index (CPI) data for September, which will be published on Friday. National CPI ex Fresh Food is estimated to have grown at a slower pace to 2.3% from 2.8% in August.