USD/JPY maintained narrow range trading during Thursday's Asian session, fluctuating around 147.40. Investors remained cautious ahead of major event releases, particularly Federal Reserve Chairman Powell's upcoming speech at the Jackson Hole symposium, which could determine market expectations for September rate cuts.

On the U.S. side, August S&P Global PMI data is scheduled for release during European trading hours on Thursday, expected to provide short-term direction for the dollar. The Dollar Index (DXY) currently hovers near 98.30, reflecting investor caution ahead of key data and policy announcements.

Regarding Japan, markets are focused on Friday's release of July national CPI data, with core CPI excluding fresh food expected to rise 3% year-over-year. This will serve as an important reference for the Bank of Japan's future monetary policy decisions. Should inflation data exceed expectations, it could intensify market bets on yen strengthening.

USD/JPY has been oscillating within the 146.22-148.52 range for nearly three weeks, currently trading near the 20-day exponential moving average (EMA) at 147.56, indicating a sideways consolidation trend.

The 14-day Relative Strength Index (RSI) fluctuates within the 40-60 range, reflecting a lack of directional momentum in the market. On the upside, a breakthrough above the July 16 high of 149.19 could target the 150 psychological level and the March 28 high of 151.20.

On the downside, a break below the July 24 low of 145.85 would target the July 7 low of 144.22 and the July 3 low of 143.45. Overall, USD/JPY maintains a consolidation pattern ahead of key data and policy events, with breakout direction likely dependent on Powell's speech and Japan's CPI results.

Market Outlook: USD/JPY's current movement sits at a critical juncture, lacking breakthrough momentum. Should the Federal Reserve signal strong rate cut intentions, the dollar may face pressure while the yen could find support. Conversely, if Powell emphasizes persistent inflation risks, the dollar would receive a boost, pushing the pair toward 150.

From a technical perspective, the 147 level serves as a short-term watershed, with focus on range breakout signals for trend direction.