• USD/JPY edges higher to 158.30 in Tuesday’s early Asian session. 
• Fed officials acknowledged significant progress on inflation. 
• The pair’s upside might be limited amid the fear of FX intervention by Japanese authorities. 

The USD/JPY pair trades on a stronger note around 158.30 on Tuesday during the early Asian trading hours. The uptick of the pair is bolstered by the modest rebound in US Dollar (USD). Investors will take more cues from the US June Retail Sales and the speech from the Federal Reserve’s (Fed) Adriana Kugler.

Fed Chair Jerome Powell said on Monday the three US inflation readings of this year "add somewhat to confidence" that the inflation is on course to meet the Fed’s target in a sustainable fashion, suggesting a shift to interest rate cuts may not be far off. Fed Bank of San Francisco President Mary Daly stated that inflation is cooling down in a way that bolsters confidence that it’s on its way to 2%. However, Daly added that more information is needed before making a rate decision.

The growing speculation that the US Fed would lower its borrowing costs might undermine the Greenback in the near term. According to the CME’s FedWatch Tool, the market is now pricing in 100% odds that the Fed funds rate will decline by at least 25 basis points when the Federal Open Market Committee (FOMC) meets in September