With the US employment report and Consumer Price Index due from tonight through next week, US stock market movements will be the focus for USD/JPY. Next week's key points are the release of the US CPI and views related to the Federal Reserve.
In the Tokyo market, USD/JPY continued to trade in a range from the mid-¥156s to around ¥159. After hitting a low of around ¥157.26 early in the session, it recovered to the ¥158 range against a backdrop of movement in long-term US Treasury yields.
The Nikkei 225 closed ¥3,643.13 lower than the previous day at ¥57,434.77, with the decline spreading after a sharp drop in US AI and semiconductor-related stocks. The TOPIX fell 232.40 points to 3,707.99.
In overseas markets, the US October employment report is due tonight. Nonfarm payrolls are expected to accelerate from an increase of 29,000 previously to an increase of 70,000. The unemployment rate is forecast at around 4.2%. Depending on stock price movements, either a risk-on or risk-off scenario is possible.
Next week's key focus is the release of the US October CPI ahead of the December FOMC meeting. As year-on-year data will not be released this time, inflation will be assessed primarily based on the month-on-month figures. USD/JPY's 200-day moving average is trending upward and the pair is showing resilience, but a break below the low ¥157s would put the ¥156.00 lower end of the range into focus.