USD/JPY has been going up since last Friday, and on Tuesday, it was trading around 146.60 during the Asian session. Even though the market is cautious because of the weak US jobs report and the chance that the US Federal Reserve (Fed) will not change interest rates at its September meeting, the pair is going up.

Also, the rise of the USD/JPY pair could get a boost from the fact that investors are still thinking about the possibility of a quarter-point (bps) rate hike by the Fed.

But Japan's disappointing year-over-year figures on household spending in July, which came out on Monday, could be making the Japanese Yen (JPY) weaker. The numbers showed the biggest drop since February 2021. The real number was -5.0%, which was much worse than the expected -2.5%. The number for June was -4.2%. This means that the Bank of Japan (BoJ) might not make any changes to its easy-going monetary policy right away.

At the time of writing, the US Dollar Index (DXY), which measures how the US dollar does against six other important currencies, is around 104.10. Both the steady growth in jobs in August and the rise in US Treasury yields helped the US Dollar (USD) rise. People in the market are waiting for the ISM Services PMI for August, which is set to come out on Wednesday.

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