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USD/JPY edges higher as US jobless claims miss expectations

Initial Jobless Claims fell to 199K and Challenger Job Cuts declined, though Friday's nonfarm payrolls are set to drive the next move.

Reported · Written up by our desk · Major Pairs

USD/JPY is trading modestly higher near 158.20, extending a fourth straight session of yen weakness as the pair retraces some ground after last week's coordinated Japan-US intervention, according to FXStreet.

FXStreet said Thursday's US labor data offered limited direction for the currency move, with Initial Jobless Claims falling to 199K versus a 202K consensus, slightly above the prior 198K. Challenger Job Cuts for July dropped to 33.429K from 45.849K, pointing to cooling separations rather than an acceleration in layoffs, FXStreet added.

Looking ahead, FXStreet noted that Friday's Nonfarm Payrolls report is expected to overshadow the prior releases, with a Reuters economists survey calling for an 80K gain in July after June's 57K. FXStreet also cited expectations for the unemployment rate to stay at 4.2%, average hourly earnings at 0.3% on the month and 3.5% year over year, and the workweek at 34.3 hours.

On the policy side, FXStreet referenced remarks from Federal Reserve Governor Lisa Cook, who said she was open to the idea that rates may need to rise to address inflation she described as too high. The piece also highlighted that USD/JPY technical levels are consolidating just under 158.28, while the 100-period simple moving average near 161.52 remains a higher cap and support is seen around 157.90 and 157.71.

Latest closeUSD/JPY 157.69 ▲0.1%

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