The US Dollar/Japanese Yen pair faced downward pressure near the 150.00 psychological level on Friday, as the recent US Dollar rally appeared to take a breather. However, the overall outlook for the US Dollar remains positive.

The US Dollar Index declined from its 10-week high, while market sentiment improved with Democratic candidate Kamala Harris leading national polls and S&P 500 futures gaining in early trading. US Treasury yields also decreased.

While the Federal Reserve is expected to cut interest rates, recent US economic data suggests a more moderate path. The CME FedWatch tool indicates a 50 basis point decline in interest rates for the remainder of the year.

In Japan, inflation rose to 2.1% in September, keeping the Bank of Japan on track for further interest rate hikes.

Key Points:

• USD/JPY Stall: The US Dollar/Japanese Yen pair faced downward pressure.
• US Dollar Outlook: The overall outlook for the US Dollar remains positive.
• Interest Rate Expectations: The Federal Reserve is expected to cut interest rates, but at a moderate pace.
• Japanese Inflation: Inflation in Japan rose, supporting further interest rate hikes.