Key data will be released soon, and worries in the market are fueled by expectations of tightening from the Federal Reserve.

The USD/JPY exchange rate hovered around 161.55 in the early session on the 22nd, indicating that the market believes expectations of US monetary policy tightening could push up the USD/JPY exchange rate. This week, the US will release the latest inflation data, and there is a strong atmosphere of stable inflation and tightening policy. The wider capital market pricing adjustment risks are being closely watched by all parties. The market will closely monitor the US May Personal Consumption Expenditures (PCE) Price Index and Purchasing Managers' Index (PMI) preliminary value this week. After the Federal Reserve released signals of a possible rate hike, these data are regarded by the market as evidence and guidance for further action.