The USD/JPY currency pair traded close to the mid-162.00s level during Monday's Asian session, showing some fluctuations but little directional movement. This subdued activity came as liquidity thinned due to a public holiday in Japan, according to FX Street.
FX Street reported that the holiday contributed to relatively thin liquidity, limiting significant price swings in the Japanese yen against the US dollar. As a result, the pair remained just below the mid-162 range throughout the session.
Market participants in Japan often see reduced trading volumes on local holidays, which can lead to muted FX moves despite underlying market pressures. Traders will likely watch for increased activity once normal trading resumes.