USD/JPY attracts some sellers below 144.00 on weaker US Dollar

• USD/JPY softens to near 143.85 in Monday's Asian session, down 0.53% on the day. 
• Expectations for earlier Fed interest rate cuts undermine the US Dollar. 
• Traders brace for the Fedspeak later on Monday ahead of the BoJ's Q2 Tankan survey. 

The USD/JPY pair attracts some sellers to around 143.85 during the Asian session on Monday. The US Dollar (USD) weakens against the Japanese Yen (JPY) amid rising bets of Federal Reserve (Fed) interest rate cuts. Later on Monday, the Atlanta Fed President Raphael Bostic and Chicago Fed President Austan Goolsbee are set to speak. 

The United States (US) and China are close to a tariff deal. However, US President Donald Trump unexpectedly ended trade discussions with Canada, adding uncertainty to the market's positive outlook. 

Additionally, traders bet that the US central bank will cut rates more times and possibly sooner than previously expected. The markets are pricing in nearly 92.4% odds of one quarter-point Fed rate reduction, up from 70% a week earlier,  according to the CME FedWatch tool. 

About the data, the Personal Consumption Expenditures (PCE) Price Index rose by 2.3% YoY in May, compared to 2.2% in April (revised from 2.1%), according to the US Bureau of Economic Analysis on Friday. This reading came in line with market expectations. Meanwhile, the core PCE Price Index, which excludes volatile food and energy prices, climbed 2.7% in May, following the 2.6% increase (revised from 2.5%) seen in April.  

On the other hand, the cautious stance from the Bank of Japan (BoJ) around raising interest rates could weigh on the JPY and create a tailwind for the pair. Looking ahead, traders will keep an eye on the BoJ's upcoming quarterly Tankan survey for the second quarter (Q2), due later on Tuesday, for fresh impetus.