USD/JPY struggles to extend winning streak, focus shifts to US CPI

• USD/JPY strives to extend its upside move above the weekly high of 152.17.
• Japan PM Takaichi is expected to announce raise fiscal spending beyond last year's 13.9 trillion yen budget.
• Investors await the delayed US CPI data for September.

The USD/JPY pair struggles to extend its winning streak for the fourth trading day on Wednesday. The pair faces barriers near a fresh weekly high of 152.17 posted on Tuesday. The outlook of the pair remains firm as market experts believe newly elected Japan's Prime Minister Sanae Takaichi to follow former PM Shinzo Abe's economic policies.

According to a report from Reuters, Japan PM Takaichi prepares an economic stimulus package that might exceed ($92 billion) to help households cope with persistent inflation.

Such a scenario would provide relief to households from sticky price pressure while maintaining economic momentum.

On the monetary policy front, a poll from Reuters has shown that the 45 of 75 economists (60%) expect the Bank of Japan (BoJ) to raise rates by 25 basis points (bps) this quarter. The poll also showed that nearly 96% of economists expect borrowing costs to increase at least 25 bps by the end of March 2026.

Meanwhile, the US Dollar (USD) trades higher amid receding trade frictions between the United States (US) and China. During the press time, the US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, revisits weekly high near 99.10.

Going forward, investors will focus on the US Consumer Price Index (CPI) data for September, which will be published on Friday. The inflation data will significantly influence market expectations for the Federal Reserve's (Fed) monetary policy outlook.