USD/JPY holds lower so far on the day

<p>This is looking like positioning flows ahead of the Fed and BOJ, more than anything else if you ask me. There was a bit of a pop yesterday as well amid light trading to 141.70 before a quick retreat to 141.20 again. That is now followed by a further decline to a low of 140.24 earlier, and we are just off that now.</p><p>The downside move also gained some traction after a fall below the 100-hour moving average (red line) earlier. As such, that opens up room to maneuver towards 140.00 next potentially as well.</p><p>As much as we are seeing yen bulls get their hopes squandered ahead of the BOJ decision on Friday, there's still an outside risk of the central bank surprising. And as mentioned <a href="https://www.forexlive.com/news/what-are-the-expectations-ahead-of-the-major-central-bank-decisions-this-week-20230724/" target="_blank" rel="follow">here</a>, that would be the biggest surprise definitely this week if it were to happen.</p><p>So far today, the drop here is still suggestive of a more mixed dollar mood. EUR/USD is up slightly by 0.15% to 1.1070 but GBP/USD is down 0.05% to 1.2893. Meanwhile, the commodity currencies are also holding lower with USD/CAD inching just above 1.3200 and AUD/USD still down 0.5% to 0.6755 at the moment.</p>

This article was written by Justin Low at www.forexlive.com.