USD/JPY Pulls Back to 160 Amid Weaker US Data

The USD/JPY pair has pulled back to 160 as the dollar eases following weaker-than-expected US economic data.

The August ISM manufacturing and JOLTS data came in lower than expected, taking some momentum out of Tuesday's advance.

An elevated ISM prices component should help preserve the Fed's hawkish bias, limiting a deeper dollar correction.

Rising oil prices and expanding fiscal deficits are keeping the yen defensive, but rising yields are encouraging Samurai bond issuance, potentially adding support to USD/JPY if proceeds are converted into foreign currencies.