USD/JPY swings in Asian session amid uneven risk sentiment, mixed data

USD/JPY witnessed choppy trading during the Asian session, fluctuating between 139.20 and 139.80 as market sentiment wavered. The pair initially dipped on concerns about US debt ceiling negotiations but found support from slightly better-than-expected Japanese PMI data. Japan's manufacturing PMI for May came in at 50.8, up from 49.5 in April and beating forecasts of 49.8. However, services PMI slipped to 55.4 from 56.3, missing the 56.8 consensus. This mixed data kept USD/JPY rangebound, with investors also cautious ahead of key US economic releases later this week. The pair faces immediate resistance at the 140.00 psychological level, with support around 138.50. A decisive break in either direction may hinge on the outcome of US debt ceiling talks and the upcoming US PCE inflation data, which could influence Federal Reserve rate expectations.