Yen declined in Asian trade on Monday against a basket of major rivals, sharpening losses for the second straight day against the dollar and plumbing week lows as US treasury yields powered up.

Recent strong US labor data hurt the odds of multiple Federal Reserve rate cuts this year as investors await the Feds upcoming policy meeting this week.

The BOJ is convening this week to discuss monetary policies, with analysts expecting the bank to discuss cutting down the scope and pace of government bond purchases.

The Price

The USD/JPY rose 0.2% today to 157.18, the highest in a week, with a session-low at 156.69.

The yen lost 0.7% on Friday against the dollar, the second loss in three days following the US payrolls report.

The yen gained 0.35% last week against the dollar, the first weekly profit in three weeks amid increasing speculation about the BOJs monetary policy meeting.

US Yields

US 10-year treasury yields rose 0.4% on Monday on track for the second straight profit, marking a week high at 4.453%, and underpinning the dollar.

The gains came after the US payrolls report showed the addition of 272 thousand new jobs last month, above estimates of 182 thousand.

Following the data, the odds of a Fed 0.25% interest rate cut in September fell to 47%, and the odds of such a cut in November tumbled to 61%.

The BOJ

The Bank of Japan is convening this week to discuss policies, expected to maintain rates unchanged.

Bloomberg reported last week that the BOJ will likely discuss cutting down its purchases of government bonds.

Similar insights came from a Reuters report, which indicated the BOJ is preparing to unwind its balance sheet of $5 trillion in a gradual manner.