USD/JPY extends the decline from the monthly high (112.08) even though the update to the US Personal Consumption Expenditure (PCE) report warns of sticky inflation, and the exchange rate may face a larger pullback during the first full week of October amid the failed attempt to test the 2020 high (112.23). USD/JPY slipped to a fresh session low (110.96) despite an unexpected uptick in the PCE, but the fresh data prints may keep the Federal Reserve on track to scale back its emergency tools as the better-than-expected ISM Manufacturing survey reinforces expectations for a robust recovery. As a result, Chairman Jerome ... (full story)