Good data could keep the Fed sidelined

USD/JPY grabbed a bid into the London fix but it has persisted over the past half-hour.

USDJPY daily chart

I think part of the reason is a carry-over from the US dollar strength last week. The driver is the Fed this week and the market has been easing toward the belief that a 25 basis point cut is coming this week and perhaps that fewer cuts will be coming in the year ahead.