USD/JPY maintains lower levels near the intraday bottom, parked at 146.60-70 in Europe. However, cautious optimism, positive Japan data, and a decline in Treasury bond yields weigh on the risk-barometer pair ahead of August US activity statistics.

Japan’s Jibun Bank Manufacturing PMI for August rose from 49.6 to 49.7, surpassing expectations, while the Services PMI rose from 53.8 to 54.3.

US 10-year Treasury bond rates have fallen from their peak in 2007 to 4.31%, while Japanese Government Bonds struggle to reach 2014 levels.

BoJ’s governor, Kazuo Ueda, declined to disclose details of a meeting with Prime Minister Fumio Kishida, describing it as routine. However, BoJ’s Kuroda provided an explanation for the July policy decision. This may be exerting downward pressure on the Yen pair.

US manufacturing index and home sales showed slight growth in August, attracting USD/JPY sellers. However, hawkish remarks from Federal Reserve Bank of Richmond president Thomas Barkin sparked a resurgence.

USD/JPY pair faces uncertainty over central bank measures, US-China relations improvement, and positive Nikkei equity gauge performance, impacting the pair.

August PMIs and July US Existing Home Sales, as well as US and Chinese news, will all have an impact on the USD/JPY pair’s intraday movements. The Tokyo Consumer Price Index release and central bank statements at the Jackson Hole Symposium will also be closely monitored for future direction.

technical examination
The RSI (14) line and successive tops around 146.50–60 are testing the USD/JPY buyers, but the Yen pair’s downside is elusive until it closes on a daily basis below the 144.80–70 support zone, which includes levels set in late June and early July.

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