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Yen rebound stalls near 158.55 per dollar ahead of NFP

Action Forex notes the USD/JPY rebound is losing momentum at 158.55, with the 2-year UST-JGB yield spread at 2.6% potentially setting up renewed yen strength if it continues to narrow.

Reported · Written up by our desk · Major Pairs

The yen’s three-day rebound against the US dollar has paused near a key technical level around 158.55 per dollar, according to Action Forex.

The outlet said technical signals point to rising risk of a bearish reversal if price action fails to break higher from the 158.55 inflexion level.

Action Forex also highlighted that the 2-year yield spread between US Treasuries and Japanese government bonds has narrowed to 2.6%, which it said could support renewed yen strength if the narrowing trend continues.

With the next major catalyst approaching, Action Forex flagged upcoming US nonfarm payrolls as the key event that could determine whether USD/JPY moves lower or breaks down further.

Latest closeUSD/JPY 158.52 ▲0.6%

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