The USD/JPY pair advanced with the beginning of the week, as demand retreated on the Japanese yen and low yielding currencies after U.S. President Barack Obama and congressional leaders approved a plan to increase the debt ceiling.
Asian shares and higher yielding currencies advanced on the back of the risk appetite, while the USD/JPY pair could see further consolidation on concerns that the BOJ will interfere in the foreign exchange market after the Japanese currency hit its highest level since March 11 quake.
The Japanese Finance Minister Yoshihiko Noda said last week that the Japanese government and BOJ will take appropriate actions to prevent further gains for the Japanese yen which could hurt exports and corporate profits.
On Tuesday at 01:30 GMT, Japan will release the annual labor cash earning for June, where it had a previous of 1.1%.
At 12:30 GMT, the U.S. economy will release the personal income for June, where it had a previous reading of 0.3% and expected to show a rise of 0.2%. On the other hand, the personal spending for June is expected to come at 0.2% from the prior reading of 0.0%.
The U.S. core PCE is expected to show a rise of 0.2% from the previous 0.3%. However, the annual core PCE is expected to come at 1.4% from the previous 1.2%.