In European trading yesterday, the pair found itself settling just under the 157 mark here. That before the reaction to the US data helped to nudge the pair higher above the figure level. And that is bringing us to the present. Price action is now finding a new figure level to settle just under, that being the 158 mark. It's a similar story as dip buyers are slowly trying to push the boundaries, but not too much so as to trigger Japan to step in again.
For today though, we still have a couple of key risk events to work through. US data will come into focus again and we've got quite a number on the agenda. There is the ADP employment change, the ISM manufacturing PMI, and JOLTS job openings on the data docket. And after that, there is the FOMC meeting decision and Powell's press conference.
One can presume that Japanese officials are also watching all of that closely in weighing up the USD/JPY reaction before maybe having to respond.
But for now, cautious tones are prevailing once more as dip buyers are waiting for the right moment to pounce further. And they'll be hoping that the US data later gives them a reason to do just that.
