The Japanese Yen (JPY) attracted several intraday sellers on Tuesday in reaction to data, which showed that Japan's real wages fell in August after two months of gains. Furthermore, household spending also declined during the reported month, raising doubts about the strength of private consumption and a sustained economic recovery.

This comes on top of blunt comments on monetary policy by Japan's new Prime Minister and fuels uncertainty over the Bank of Japan's (BoJ) plans for additional rate hikes. News of a possible Hezbollah-Israel ceasefire undermined demand for the safe-haven JPY and assisted the USD/JPY pair in stalling its modest pullback from the highest level since August touched on Monday.

However, renewed speculations that Japanese authorities might intervene to support the domestic currency hold back the JPY bears from placing aggressive bets. Apart from this, subdued US Dollar (USD) demand keeps a lid on any meaningful upside for the USD/JPY pair and leads to the range-bound price action during the Asian session on Wednesday.

Investors also seem reluctant and prefer to wait on the sidelines ahead of the release of the September FOMC meeting minutes later today. This, along with the US Consumer Price Index (CPI) and the Producer Price Index (PPI) on Thursday and Friday, respectively, will influence the USD price dynamics and determine the next leg of a directional move for the currency pair.

Source : FXstreet