USD/JPY remains above mid-147.00s ahead of US ISM PMI
On Tuesday, there is some selling pressure on USD/JPY due to general USD weakness. The dollar is hampered by expectations that the Fed would tone down its aggressive attitude. The Fed-BoJ policy divergence should constrain losses for the pair before the FOMC meeting.
On Tuesday, the USD/JPY pair saw new supply and fell to a new daily low in the mid-147.00s of the European session. The pair is now under pressure from several causes and seems to have delayed its recovery from the psychological level of 145.00, or the almost three-week low reached last Thursday.
Speculations that authorities may intervene again to prevent a further sharp decline in the native currency help boost the Japanese yen. It is noteworthy that Japan invested a record amount of 6.3499 trillion in two unannounced currency interventions during trading days in October. The USD/JPY pair is under pressure to decline due to this and the development of some selling surrounding the US currency.
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