USDJPY pair rises during the Asian session, but there is little follow-through purchasing.

During the Asian session on Monday, the USDJPY pair gets modest dip-buying at 149.35-149.30. But it lacks follow-through and remains below a one-and-a-half-week high reached on Friday.

On the heels of sluggish USD demand, intervention worries limit the USDJPY pair’s gain.

The US Dollar (USD) struggles to capitalize on its post-US CPI gains from the previous two trading days. And begins the new week on a sour note, which is considered as a negative for the USDJPY pair. Several Federal Reserve BanksOfficials at the Federal Reserve (Fed) indicated. That the US central bank may forego a rate hike in November due to a rise in bond yields that has tightened financial conditions. This, in turn, prevents USD bulls from taking aggressive wagers, creating a headwind for the USDJPY pair.

The contrasting policy stance of the BoJ and Fed continues to serve as a tailwind and give support.

Aside from that, predictions that Japan will interfere in the FX market to counteract the Japanese Yen’s (JPY) continuous weakening help to keep the major under control. However, the Bank of Japan’s (BoJ) more dovish approach. Along with an optimistic tone around US equities futures, is viewed eroding the safe-haven JPY and offering some support to the USDJPY pair.  In reality, the Japanese central bank maintains its position. that inflation is temporary, and that it has no intentions to reduce its huge monetary stimulus.

In contrast, markets are still pricing in one more Fed rate rise before the end of the year. Following the release of the US CPI data last week, which indicated that inflation remains well over the Fed’s 2% objective. And bolstered expectations for future policy tightening. The bets were removed. This supports rising US Treasury bond rates and favors USD bulls. Implying that the USDJPY pair’s path of least resistance is to the upside. As a result. Any dip might be viewed as a purchasing opportunity.

Market players are now focused on the US economic calendar.

Market players are now focused on the US economic calendar. Which includes the Empire State Manufacturing Index. This, , as well as Fedspeaks and US bond rates, may affect USD price dynamics and offer some momentum to the USDJPY pair later in the early North American session. Traders will also look for short-term chances in the major based on wider risk sentiment.