Wages

The Bank of Japan’s July hold did not close the door on further tightening, with markets watching September and October as possible windows for a move to 1.25%. USDJPY remains vulnerable while yen intervention risk, rising Japanese yields and key technical support levels shape the next move.

Gold is trading slightly higher in a narrow range as lower crude prices ease near-term inflation concerns. The next major test for XAU/USD is Friday’s payrolls data, which could determine whether buyers challenge resistance or sellers regain control.

The Bank of Japan’s July decision kept a potential September or October rate increase in focus as inflation risks, wage growth and yen weakness remain central to policy debate. USDJPY is under pressure after a failed break above 160, with traders watching whether support near 157 gives way.