Home›Forex›Major Pairs›Soft US labor demand tempers USD/JPY, yen holds near 1…

Soft US labor demand tempers USD/JPY, yen holds near 157.40

Vacancies fell to 7.359 million in June, undershooting expectations, while investors also watch upcoming Bank of Japan meeting minutes and Japan wage data for yen drivers.

Reported · Written up by our desk · Major Pairs

FXStreet reports USD/JPY traded on the back foot near 157.40 during Tuesday's American session as the Japanese yen built on recent gains.

The move was supported by softer US labor demand, with the Job Openings and Labor Turnover Survey showing vacancies fell to 7.359 million in June from a revised 7.537 million in May. FXStreet adds that the reading undercut the 7.4 million consensus, which took the edge off the US dollar and dragged Treasury yields lower, narrowing the interest-rate differential that has supported the pair.

Lower energy prices provided an additional tailwind for the yen, FXStreet notes, given Japan's status as a major net energy importer. Separately, FXStreet cites expectations from Al Arabiya and Al Hadath that announcements related to reopening the Strait of Hormuz could come within hours or on Wednesday, adding uncertainty to the trade backdrop.

Looking ahead, FXStreet says investors are focused on the Bank of Japan Monetary Policy Meeting Minutes late in the Asian session, followed by Japan's Labor Cash Earnings, forecast to rise to 3.4% year over year in June from 3.2%. The story also points to technical levels, with USD/JPY around 157.37 and key support near 157.23 and 156.62.

Latest closeUSD/JPY 157.38 ▼1.8%

More like this

Sources