TL;DR: USD/JPY has recovered a third of last week's intervention-driven losses, but Friday's payrolls report sets up an asymmetric trade — a strong print faces profit-taking near 160 on intervention risk, while a weak print has a clear, undeterred path back to 155.
The Japanese yen resumed its downward trend as investors reflected on the recent interventions by the United States and the Bank of Japan. After plunging to 155.20 earlier this week, the USD/JPY pair rebounded to 158.41 as traders bought the dip ahead of the US nonfarm payrolls (NFP) data.
The US Dollar tumbled and tested 155.25 against the Japanese Yen. USD/JPY formed a base and started a recovery wave above the 156.50 resistance.
The US Dollar is clawing back after a steep sell-off to end last week, but the Non-farm Payrolls report tomorrow dominates th.
USD/JPY Price Forecast: Bulls retake 200-day SMA amid recovery
Rising demand for safe-haven assets provided support to the American currency.
The Yen gave back some of its recent advance that was triggered by US and Japanese intervention. As we see over the chart, we could see wide range of trading, first between 155.00 and the resistance of 158.05, as the market demands a rebound.
USD/JPY Price Forecast: Likely return to two-month low near 155.00
The American currency is losing ground as traders react to the weaker-than-expected ADP Employment Change report.
USD/JPY fell to 157.47 on Wednesday, with the Japanese yen pausing its recent strengthening. US Treasury Secretary Scott Bessent reaffirmed Washington's support for Japan following the historic joint currency intervention.
USD/JPY holds steady after intervention: Outlook remains uncertain
The Yen gave back some of its recent advance that was triggered by US and Japanese intervention. As we see over the chart, we could see wide range of trading, first between 155.00 and the resistance of 158.05, as the market demands a rebound.