No major events are expected today.

The Japanese yen (JPY) remains stable after the release of the latest inflation data on Friday. Japan’s national Consumer Price Index (CPI) for June remained unchanged at 2.8%, matching the previous month’s figure and staying at its highest level since February. Meanwhile, the core Consumer Price Index rose to 2.6%, slightly above the previous reading of 2.5% but just below the consensus forecast of 2.7%.

The yield on 10-year Japanese government bonds is trading around 1.04%, recovering from three-week lows. This rise followed a statement by Digital Minister Taro Kono in an interview with Bloomberg, suggesting that the Bank of Japan (BoJ) should raise interest rates again in July to support the yen. Additionally, the Bank of Japan is expected to reveal its plans to reduce bond purchases this month.

The USD/JPY pair retreated by 4% in July from a 38-year high of 161.95. Analysts attribute this decline to interventions by Japanese authorities. Traders remain vigilant for the possibility of further interventions.

The US dollar is supported by a slight increase in US Treasury yields. However, the dollar’s rise may be limited as soft labor market data heightens market expectations for a rate cut by the Federal Reserve (Fed) in September.

Recommendations: Watch the 158.00 level; if it holds above, take Buy positions. If it bounces back, take Sell positions.