• The pair is down 0.4% to 143.50 at the moment

USD/JPY daily chart

We did see the pair threaten a firmer drop below 144.00 yesterday, only to be salvaged by a bounce in US trading. Right now, we're seeing the heavy mood continue with a drop to 143.50 ahead of European trading.

This comes as Treasury yields come off the highs from yesterday with 2-year Treasury yields now falling back to 4.98%, down from the high of 5.12% yesterday after the ADP employment numbers here.

Outside of the yen, other major currencies aren't seeing much appetite today. And this time around for USD/JPY, there isn't any large option expiries to really influence price action all too much.

As such, there might be scope for a correction but we will have to test that theory against the US non-farm payrolls data later to come as well.

https://www.forexlive.com/news/usdjpy-keeps-heavier-ahead-of-european-trading-20230707/