USD/JPY retreats from the 152.50 area as the US Dollar loses steam

• The US Dollar eases to levels near 153.00, on track for a 0.6% weekly loss
• Softer-than-expected Japanese Household spending data added pressure on the Yen earlier on Friday.
• The US Michigan Consumer Sentiment Index is expected to show further deterioration in November.
  

The US Dollar is giving away previous gains on Friday, approaching weekly lows near 152.85, after being rejected at the 153.50 area earlier on the day. The pair remains looking for direction in choppy markets amid a risk-averse mood and with all eyes on the US Michigan Consumer Sentiment Index report.

The Yen depreciated during the Asian trading session, hit by softer than expected household spending data, which grew at a1.8% year-on-year pace in September, missing expectations of an acceleration to 2.5%, following August's 2.3% increase. 

These figures support Japanese PM Takaichi, who said earlier this week that the Japanese economy is only halfway through the path to achieve sustainable and stable price growth. These comments put the Bank of Japan's plans to hike interest rates in December into question, and add pressure on the Yen

The pair is on track for a 0.6% weekly loss, weighed by mixed US  employment data and some verbal interventions from Japanese Finance Minister Katayama, who warned about excessive currency volatility earlier in the week, as the Yen dropped to levels that triggered interventions in 2022 and 2024.

In the US, the comments of the Federal Reserve vice-chair Philip Jefferson will grab some attention after the downbeat jobs data seen on Thursday, although the highlight of the day is the Michigan Consumer Sentiment Index, which is expected to have deteriorated for the fourth consecutive month in November.