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The USD/JPY pair attracts some buyers to around 155.55 during the early Asian session on Tuesday. The upbeat US economic data provides some support to the Greenback against the Japanese Yen (JPY). The Bureau of Labor Statistics (BLS) will not publish the January employment report on Friday as scheduled due to the partial government shutdown.

Data released by the Institute for Supply Management (ISM) showed on Monday that the US Manufacturing Purchasing Managers' Index (PMI) improved to 52.6 in January from 47.9 in December. This figure came in stronger than the market expectation of 48.5 and registered the strongest expansion since 2022. 

This report suggested the US Federal Reserve (Fed) could remain on hold for an extended period, boosting the US Dollar (USD).  Traders slightly reduced bets on Fed rate cuts following the upbeat PMI data. Money markets showed the next reduction coming in July.

Japanese Prime Minister Sanae Takaichi has called for a snap general election on February 8. Fiscal concerns and political uncertainty in Japan could weigh on the Japanese Yen in the near term. However, the Bank of Japan (BoJ) Summary of Opinions from the January 22-23 meeting revealed growing hawkishness. Board members warned against falling "behind the curve" on inflation and called for timely rate hikes if growth and inflation outlooks remain stable. This, in turn, might help limit the JPY’s losses. 

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