USD/JPY Falls to Around 156.4 on Japan Half-Year End Repatriation and Fed Comments

USD/JPY traded near 156.4 after dropping roughly 0.7% from around 157.5 during Asian trading hours on Wednesday. The move was driven by heavy repatriation flows from Japanese exporters and institutional investors ahead of the fiscal half-year end on September 30. The dollar also faced headwinds after New York Fed President John Williams indicated no immediate urgency to lift interest rates further following September's hike. The yen strengthened despite soft domestic data, as Japan's August industrial output unexpectedly fell 1.7% month-over-month and August retail sales rose 2.7% year-over-year, missing expectations.