The USD/JPY pair extended the consolidative price action and remained within striking distance of multi-week lows refreshed earlier today.
At the time of writing, the pair was flat lined around the key 110.00 psychological mark and lacked any firm direction. With the US Dollar languishing near 15-month lows, a modest uptick in the European equity markets did little to support the Japanese Yen's safe-haven appeal and helped the pair to stall overnight slump to the lowest level since mid-June.
Moreover, the Japanese Yen was also being weighed down by today's weaker average cash earnings figures from Japan, slumping 0.4% for June as compared to a 0.6% gain seen in the previous month.
Investors, however, preferred to stay on the sidelines and refrained from placing aggressive bets ahead of the big event risk - the release of US monthly jobs report, which has eventually led to a subdued/range-bound price action through the mid-European session.
All eyes would remain on the closely watched NFP data, which would influence sentiment surrounding the USD and provide some fresh impetus for the pair's near-term trajectory.
Valeria Bednarik, Chief Analyst at FXStreet writes: "There's a long way to the upside before calling a trend change, and seems unlikely that this would happen, even if US data surprise to the upside, as the pair would need to close the week at least above 112.40 to have an opportunity the next one."
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