Holding Near 154.00, Jobless Data Today Ahead Of BoJ Tomorrow

USD/JPY was mostly supported post the Asia close on Monday. From the 153.00/25 region we rebounded back above 154 in US trade and track close to the level in early Tuesday dealings. Yen lost just under 0.20% for Monday's session, although ranges kept us within levels seen through the tail end of last week.

• Broader USD sentiment was mostly positive for Monday trade, with EUR off 0.32% a drag on trends elsewhere. EU equity weakness was a feature and weight on the single currency. The BBDXY index rose 0.26%.
• Treasury futures gained slightly after the Tsy borrow estimate declined from $847B to $740B. Front end yields were slightly firmer (2yr back to 4.40%). Still, US-JP 2yr yield differentials sit around lows back to May last year.
• For USD/JPY, technicals remain unchanged with short term momentum still skewed lower. Focus is on the July 25th low at 151.94, while the July 24 highs rests at 155.99.
• On the data front today we have the June jobless rate and Job-to-Applicant ratio. The market expects steady outcomes (jobless rate at 2.6%).
• Tomorrow we have the BoJ decision, while the consensus is for no change in rates, some market participants are forecasting a hike. On bond buying, the broad consensus is for a reduction in bond buying by about half over the next few years.