QCP Capital's analysis indicates that driven by the normalization of the Bank of Japan's monetary policy, unwinding of arbitrage trades, and a weaker dollar, the yen has strongly rebounded against the dollar from 160 to 154. Japan's foreign exchange reserves saw a sharp drop of $87.8 billion in August, suggesting possible official intervention in the forex market. As the central bank shifts clearly from easing to normalization, USD/JPY faces strong structural resistance. Although July's energy contribution narrowed to 0.48 percentage points, leading to an overall decline, core PCE stubbornly remains at 3.3%, forcing the Fed to stay vigilant about inflationary pressures. August non-farm payrolls exceeded expectations with a surge of 162,000 jobs, and previous figures were revised up by a total of 55,000, showing the labor market's resilience. The soft landing outlook remains solid, but if the labor market stays robust while core inflation remains sticky, the market's pricing for unchanged rates this year faces a tightening-driven challenge. https://www.(wublock123.com)/news/news-68169