The dollar/yen was 0.25 percent higher as of 08:45 GMT to trade at 114.19, with traders looking ahead of inflation data in the United States later in the week.


Earlier in the Asian session, China released its consumer price index and producer price index for June, which came in at 1.5 percent and 5.5 percent in annual terms. Both indicators met with market analysts’ expectations. On monthly basis, the CPI notched down 0.2 percent.


As for Japan, the unadjusted current account surplus came in at 1.654 trillion yen, tighter than the initially estimated 1.796 trillion yen Core machinery orders dropped 3.6 percent in May, while experts had seen a 7.7 percent build.


Last week, the US Labor Department reported a 222,000 jobs build in June, above the 179,000 new jobs expected. Data increased expectations for a future rate hike this year and supported the dollar across the board.


The US dollar index, which tracks the greenback against a basket of six major rivals, was 0.02 percent lower at 95.81 by the time of this writing.


According to Fed funds tracked by CME Group’s FedWatch tool, traders are currently pricing in around a 50.9 percent probability of a 25 basis points rate move by December.


There are no relevant reports scheduled on Monday. The data front looks quite thin this week. Attention will be directly mainly to remarks from Fed Chair Janet Yellen on Wednesday and consumer price index and retail sales on Friday. China’s trade balance is up on Thursday.


Dynamics on the bond market will likely continue to affect the pair in the following days. The differential between US Treasuries and Japanese Government Bonds (JGBs) is now playing a big role for the USDJPY.