The push and pull in USD/JPY continues to play out after the breakout attempt last week caved in. The pair is down 0.3% on the day to trade back below 135.00 and the figure level will continue to be a key battleground in trading this week.

For now, risk tones are more measured with US futures little changed but nudging a little higher after being slightly lower earlier. Meanwhile, bond yields are a fair bit higher but nothing major. S&P 500 futures are up 0.2% while 10-year Treasury yields are up 2.7 bps to 3.15%.

Risk sentiment and bond market action will continue to dictate proceedings this week with little in terms of key releases to scrutinise. There will be central bank speakers to watch out for though, so that could offer something for traders to chew on. The main event will be a policy panel between Fed chair Powell, ECB president Lagarde, and BOE governor Bailey on Wednesday.

Going back to USD/JPY, the pair is looking a little "heavy" now with price action keeping below its key hourly moving averages at 134.92 (200-hour MA) and 135.51 (100-hour MA). That suggests sellers are in near-term control but there might need to be a catalyst for a stronger push towards retesting the 16-17 June lows near 132.00.