USDJPY: Japan delays intervention as markets await US economic data

USDJPY trades cautiously as Japanese authorities appear to be postponing foreign exchange intervention until crucial US economic data provides clearer market direction. The Bank of Japan's wait-and-see approach reflects strategic patience, preferring to assess incoming US indicators before potentially defending specific yen levels. EURJPY and GBPJPY cross pairs also show reduced volatility as intervention risks keep traders on edge. AUDUSD movements suggest broader dollar dynamics remain linked to US data expectations. Market participants note that Japanese officials have historically preferred intervening during periods of rapid, one-sided moves rather than gradual trends. The upcoming US data releases could trigger the volatility conditions that prompt Japanese action, particularly if USDJPY approaches psychologically important levels. Technical analysis shows the pair consolidating within a defined range, with traders reluctant to establish large positions ahead of potential intervention.