The Japanese Yen continues to be undermined by the BoJ’s cautious stance and the risk-on mood.
Intervention fears limit further JPY losses and cap the USD/JPY pair amid a modest USD weakness.
The US PCE Price Index keeps a June rate cut by the Fed on the table and weighs on the Greenback.
The Japanese Yen (JPY) kicks off the new week on a softer note against its American counterpart, albeit lacking follow-through and remains confined in a familiar range held over the past two weeks or so. The Bank of Japan's (BoJ) cautious approach towards further policy tightening, along with the prevalent risk-on mood, continues to undermine the safe-haven JPY. That said, signs of a potential government intervention in the market to address any excessive falls in the domestic currency hold back the JPY bears from placing aggressive bets.
Meanwhile, the US Personal Consumption Expenditures (PCE) Price Index released on Friday did little to alter expectations that the Federal Reserve (Fed) will begin cutting interest rates at the June policy meeting. This keeps the US Dollar (USD) bulls on the defensive and contributes to capping the upside for the USD/JPY pair. Traders now look to important US macro data scheduled at the beginning of a new week, starting with the ISM Manufacturing PMI for some impetus, though the focus remains on the Nonfarm Payrolls (NFP) on Friday.
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