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USD/JPY holds near 157.80 as markets watch US nonfarm payrolls
FXStreet notes the yen’s bounce is being pressured by expectations that any Japan-US intervention strength would need domestic economic support to last.
USD/JPY was holding its three-day recovery around 157.80 in European trading, after the Japanese yen saw profit-taking following a sharp jump last week tied to a US-Japan joint intervention to curb excessive volatility, FXStreet reported.
The outlook remains cautious because investors do not expect intervention-driven gains to persist without structural changes in Japan’s domestic economy. Hopes for additional intervention were also supported by Japan Finance Minister Satsuki Katayama, who said Japan will not hesitate to carry out more forex intervention with the US.
On the US side, attention turns to US nonfarm payrolls data for July, due Friday, which could shift expectations for the dollar. The article said USD/JPY is trading below the 20-day exponential moving average at 160.55, signaling a near-term bearish tone.
Technically, FXStreet cited initial resistance near the 20-day EMA at 160.55, while the key support is the two-month low around 155.23. It added that a break below that level would put next support near the February 23 low around 154.00.
Latest closeUSD/JPY 157.69 ▲0.1%