Against the backdrop of weak U.S. employment data, USD/JPY fell temporarily from the ¥157 range to ¥156.95 before rebounding to the ¥157.20 range. The market's outlook for an October FOMC rate hike is shifting expectations.
Against the backdrop of weak U.S. employment data, USD/JPY was sold from the ¥157.60 range to as low as ¥156.95. It subsequently attracted buybacks, recovering to the ¥157.20 range and rebounding from its lows.
The market was also focused on movements ahead of the day's release. Following the U.S. employment data, the probability of a rate hike at the October FOMC temporarily fell from around 28% to approximately 13%, before later moving back to around 19%.
This suggests that selling pressure on the dollar had already been continuing before the release, and USD/JPY may continue to fluctuate depending on developments in the New York market.
In actual trading, USD/JPY was trading near 157.23.