The USD/JPY pair is currently at 149.60 due to increased demand for the US Dollar and higher US treasury yields

The USD/JPY pair is currently at 149.60 due to increased demand for the US Dollar and higher US treasury yields. Market focus is on the upcoming US Retail Sales data, expected to rise by 0.3% in September. However, dovish comments from Federal Reserve officials, like Austan Goolsbee and Patrick Harker, have restrained the pair's upside potential.

The US NY Empire State Manufacturing Index for October is at 4.6, surpassing market expectations but lower than the previous reading of 1.9. Last week's US Consumer Price Index (CPI) for September showed an annual figure of 3.7% and a monthly increase of 0.4%, both exceeding predictions.

As for the Japanese Yen (JPY), Finance Minister Shunichi Suzuki refrained from commenting on currency intervention statements by the IMF, stating that there's no need to delve into such details.

In the near term, the market will watch US Retail Sales, Industrial Production, and more Fed speeches. Japanese trade data is scheduled for release on Wednesday, followed by National Consumer Price Index (CPI) reports on Friday, potentially influencing the direction of the USD/JPY pair.

USDJPY continue hovering around the 150.00 area with a small correction. Next support level is at 146.80 followed by the 144.80. A possible reversal is the most awaited scenario.