BoJ Minutes and US Data to Dictate Yen's Fate Ahead of Intervention Anniversary

The Japanese Yen has stabilized near its post-intervention highs as investors await the Bank of Japan's Monetary Policy Meeting Minutes on Wednesday. The BoJ left its short-term rate unchanged at 1.00% last week in an 8-1 vote, with Governor Kazuo Ueda signaling that the central bank could accelerate the pace of tightening and would avoid falling behind the inflation curve.

Market speculation that officials remain active in the market continues to cap attempts at recovery for USD/JPY, which trades near the 156.90 area on Monday. The pair's recent rebound has been driven by a narrower interest rate differential following the BoJ's rate decision, but downside pressure remains evident as the Relative Strength Index (RSI) hovers near oversold territory.

The upcoming minutes will provide investors with insight into whether a wider group of members had begun flagging upside inflation risks. This could strengthen the case for a follow-up rate increase and provide additional support to the Yen. On the other hand, the US ADP Employment Change is due on Wednesday, which may point to a cooling labor market and undermine Treasury yields.