USD/JPY Holds Neutral as Markets Weigh US PMIs and ADP Data

The USD/JPY pair remained range-bound on Tuesday, with traders cautiously assessing the recent US Purchasing Managers Index (PMI) releases and ADP employment change data. The market is now looking for a clearer directional signal from the Federal Reserve, which could provide the next major move.

Both the manufacturing and services PMI readings offered mixed signals, while the ADP payrolls report gave a snapshot of private-sector hiring trends. Without a decisive catalyst, the pair has stayed in a neutral band, reflecting the lack of conviction among participants.

Analysts suggest that until the Fed delivers more explicit guidance on the rate outlook, USD/JPY may continue to trade in a narrow range. The next key data point could be the upcoming Nonfarm Payrolls report.