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USD/JPY steadies near weekly top ahead of US NFP, yen pressured by Japan data
Japan’s household spending fell 3.3% year on year in June, while traders tied near-term USD demand to the Fed path implied by upcoming US monthly employment data.
The USD/JPY pair is holding near the top of its weekly range after consolidating gains from the 155.25-155.20 area, which followed a joint US-Japan intervention, FXStreet reports. Spot prices were around the mid-158.00s and largely unchanged as traders waited for the US Nonfarm Payrolls release to guide fresh bets on the US Federal Reserve’s policy path.
The focus on NFP comes amid multiple cross-currents that support USD demand, including persistent geopolitical risk, inflation risk linked to rebounding oil prices, and rate hike expectations. FXStreet also points to an intelligence report from Saudi Arabia that Iraqi militias, coordinating with the Houthis in Yemen, are planning an imminent attack on the kingdom, as well as Iranian reports of a framework agreement on Strait of Hormuz management that would restrict passage for certain vessels without compensation.
Meanwhile, the yen is under pressure from concerns over Japan’s worsening fiscal condition and signs of continued weakness in domestic demand. FXStreet cites data from Japan’s internal affairs ministry showing consumer spending fell 3.3% year on year in June, defying market expectations for growth and marking a seventh straight month of contraction, a backdrop that weakens the case for a Bank of Japan rate hike in September.
Latest closeUSD/JPY 158.52 ▲0.6%