• USD/JPY consolidates on Thursday  in the initial Asian session.
• Lower US Treasury yields undermine the demand for the US dollar.
• BOJ interest rate decisions will be on the traders radar.

USD/JPY continue to move sideways following the previous session’s downside movement. The pair stayed in a narrow trading range. At the time of writing USD/JPY is trading at 113.81, down 0.01% so far.

The US benchmark 10-year T bond yields fell to 1.53%, the biggest decline since July, which underscores the demand for the greenback. Investors remained concerned about rising inflation, supply chain issues, and downbeat data. 

The greenback remains steady near 93.80, following downbeat economic data. The US New Durable Goods orders fell less than estimated in September. The rise for August was revised down to 1.3% growth from 1.8%.

On the other hand, the Japanese yen struggles to find demand  ahead of the Bank of Japan (BoJ) policy update. The BoJ is expected to maintain its massive stimulus program and cut this year’s inflation forecasts at its meeting on Thursday.

It is worth noting that, S&P 500 Futures are trading at 4,550.50,up 0.13% so far. 

As for now,  traders are waiting for Japan Retail Sales, BOJ Interest Rate Decision, and US GDP Growth Rate  to gauge the market sentiment.

USD/JPY additional levels