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USD/JPY slips below 158.00 as BoJ hike bets and safe-haven USD compete
The pair is holding near 158.00 after reacting to weaker US Nonfarm Payrolls, while traders continue to price a possible Bank of Japan rate increase as soon as October.
USD/JPY is trading just below 158.00 and has struggled to build on a bounce from below 157.00, according to an FXStreet market update.
The move comes after Friday’s reaction to weak US Nonfarm Payrolls, with the pair oscillating between small gains and minor losses in the early European session.
FXStreet also notes that expectations for a Bank of Japan interest rate hike as soon as October, along with intervention risks, are supporting the Japanese yen, while the US dollar pulls back after hitting a fresh high since April 2025.
The update adds that geopolitical uncertainty may keep supporting the safe-haven US dollar, helping limit downside for USD/JPY, and it points to a mildly bullish near-term technical bias above the 100-period simple moving average on the 4-hour chart and the 61.8% Fibonacci retracement.
Latest closeUSD/JPY 157.83 ▲0.2%