The dollar is lightly higher on the day and that is helping to keep USD/JPY underpinned but the pair in general tends to see a much wider range than most dollar pairs recently, feeding off some volatility after the drop back below 135.00 at the end of July.
As much as buyers are holding up, there is still a sense of directionless movement in USD/JPY for now. The downside for the pair is limited closer to the 100-day moving average (red line) while topside action is capped by the 135.00 handle. All eyes are on the bond market for what comes next and there might be more waiting to do in that sense.
Looking ahead, the US retail sales data tomorrow will be one to watch in terms of risk events for this week.
