USD/JPY oscillates around 141.80 ahead of US ISM Services PMI

• USD/JPY is juggling around 141.60 as the focus shifts to US ISM Services PMI data.
• The asset is displaying a loss in upside momentum amid lower consensus for Services PMI.
• An increment in Japan’s Overall Households Spending data may step up the inflation rate ahead.

The USD/JPY pair is displaying a lackluster performance in the early Tokyo session as investors are awaiting the release of the US ISM services PMI data. The asset is displaying back-and-forth moves in a narrow range of 140.53-140.60. On Monday, the asset printed a fresh 24-year high at 140.80. However, a follow-up momentum loss structure is indicating that investors are discounting lower consensus for the US ISM Services PMI data.

As per the preliminary estimates, the Services PMI will decline to 55.5 against the prior release of 56.7. Also, the forward-looking Services New Orders Index will remain subdued at 59.5 vs. 59.9. The consequences of adopting sheer pace in hiking interest rates by the Federal Reserve (Fed) are visible in the service sector. Also, the big tech boys have already halted their recruitment process ahead of a decline in economic activities.

Apart from that, the speech from Fed chair Jerome Powell scheduled on Thursday will be of utmost importance. Fed’s Powell may dictate the likely monetary policy action in September so the market participants could gear up for the unexpected.

On the Tokyo front, investors are awaiting the release of the Overall Household Spending data. The economic data is seen higher at 4.2% against the former print of 3.5%. An acceleration in households’ payouts may support the inflation rate, and the Bank of Japan (BOJ) will move apparently towards the path of a ‘neutral’ stance on monetary policy.