USD/JPY Stalls Ahead of Key US CPI Report and BoJ Rate Decision

The US dollar has regained some of its lost ground following the softer than expected NFP report. However, the September rate hike probabilities remain uncertain.

The unemployment rate fell to 4.1%, but the labour market's overall trajectory is still a topic of debate. The upcoming US CPI report will be crucial in determining the Federal Reserve's decision on interest rates.

Meanwhile, the Bank of Japan (BoJ) is expected to raise its benchmark interest rate to 1.25% in September, with a 58% probability according to market pricing.