10-year yields in the US are down 5 bps to 4.461% currently and that is weighing on USD/JPY mostly in European trading. The dollar is now trading more mixed again versus the rest of the major currencies, keeping little changed. But in the case of USD/JPY, the pair is nudging to the lows for the day as seen above.
In the bigger picture, there is still some pushing and pulling in and around the 157.00 mark.
Any attempts by buyers to try and test higher levels are still being met with some caution, with Japanese authorities keeping a watchful eye on things.
Meanwhile, the downside for now is being arrested by some near-term support. The region around 156.57-62 is limiting losses in the pair, at least for the time being. As such, sellers will have to do more as well in justifying any return trip towards the 155.00 mark.
For trading this week, the big US data surrounding the labour market will be key. The ISM manufacturing and services reports will be the first hurdle, before moving on to the ADP employment numbers and the initial weekly jobless claims. And all of that will culminate in the release of the non-farm payrolls report on Friday.