USD/JPY rises to 132.00 amid gloomy market sentiment.

In the Tokyo session, the USD/JPY pair is approaching the critical resistance level of 132.00. The asset is seeing significant strength as a result of the risk-aversion theme and Bank of Japan (BoJ) Governor Haruhiko Kuroda's preference for expansionary monetary policy.

The US Dollar Index (DXY) is aiming to break through the 103.00 resistance level as demand for safe-haven assets grows. Despite a two-day sell-off, risk-perceived assets such as S&P500 futures are seeing selling interest. The focus has shifted to the United States Consumer Price Index (CPI) data, which will be released on Tuesday.

The consensus predicts that headline inflation will fall further to 5.8% on an annual basis, down from 6.5% in the previous release. In addition, core inflation, which excludes the impact of oil and food prices, is expected to be 5.3%, down from 5.8% previously. However, remarks from Richmond Fed President Thomas Barkin and the lowest January unemployment rate could surprise investors.

Fed According to Reuters, Barkin argued that the Fed should steer "more deliberately" from here due to the lag effects of policy. "While average inflation has peaked, the decline has been distorted by a few goods, and the median has remained high," he added.

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