Regarding the US dollar in this pair: According to Automatic Data Processing (ADP), private sector employers in the United States added 278,000 jobs in May. This is less than the 296,000 in the previous month but significantly higher than the consensus forecast of 170,000.

However, dollar bulls are hopeful for the June FOMC meeting, expecting another 25 basis points rate hike. This, in turn, keeps the dollar bulls in defense and acts as a headwind for the USD/JPY pair.

On the Japanese yen side, the currency is supported by the prospect of interventions by Japanese authorities in the markets. According to a statement by Japanese Vice Finance Minister for International Affairs Masato Kanda, the authorities will closely monitor currency market movements and respond accordingly as necessary. Thus, hinting that they may take measures to halt the depreciation of the national currency. Consequently, the risk of a safe-haven currency decline has diminished, which also puts pressure on the USD/JPY pair.

The aforementioned fundamental background indicates that the path of least resistance for the USD/JPY pair lies in the downward direction. However, bearish traders may refrain from aggressive bets and step aside in anticipation of the release of monthly employment data in the United States, widely known as the NFP report.