USD/JPY is expected to continue trading in a range centered around the ¥157 level. With the U.S. July employment report due, the battle around the 200-day moving average will be the focal point.
The foreign exchange market is focused on Japanese and U.S. economic indicators and developments in the Middle East, with USD/JPY expected to trade sideways around the ¥157 level. Although there were periods when the yen weakened against the dollar, as well as against the euro and Australian dollar, moves to test a break above the 200-day moving average are considered likely to remain limited. As the market explores the next move in the United States, cautious sentiment is expected to persist ahead of the release of the U.S. employment report.
In the near term, market attention will be concentrated on the major economic indicators due today and tomorrow. Australia’s trade balance, the euro area’s economic report and the U.S. July employment-related indicators are among the data to watch. Depending on these releases, USD/JPY could see a change in its short-term direction.