The greenback was idling at 147.17 yen , having briefly touched a one-week high of 148.23 overnight before profit-taking emerged.
More important will be the consumer price report and retail sales for July which could have a material impact on whether the Fed eases by 25 basis points or 50 basis points in September.
The former outcome would likely lift Treasury yields and support the dollar, while the latter would have the opposite effect.
The futures market clearly still sees recession as a risk with 101 basis points of Fed easing priced in by Christmas, and more than 120 basis points for next year.
"Although the trend is moderating, inflation is too high for the Fed to justify the market pricing 100bp of rate cuts between September and year-end."
Organizations:
Federal Reserve, JPMorgan, Swiss, Atlanta Fed, ANZ