Ahead of tonight’s US employment report, USD/JPY remains capped below ¥158. Attention is focused on whether the data could revive expectations of an October rate hike.
The projected USD/JPY range during US and European trading hours was ¥156.600–¥158.500. The Tokyo market remained capped on the upside: the dollar initially firmed to around ¥158.22, but position adjustment ahead of the US employment report pushed it back to around ¥157.62 in the afternoon.
The US September employment report is scheduled for release today at 21:30. The market forecast for nonfarm payrolls is an increase of 90,000, compared with 162,000 previously. Average hourly earnings, forecast at +0.3% month on month and +3.1% year on year, will also be closely watched. Expectations for an October Fed rate hike have receded, but the data could strengthen dollar trading activity.
Tonight’s events include the US September nonfarm payrolls, unemployment rate and average hourly earnings, European inflation indicators, and speeches by central bank governors. Items marked with a star are considered particularly important. The focus is on whether USD/JPY can hold in the ¥157 range.
The employment report and wage indicators are cited as data points that could influence USD/JPY. The market response is expected to vary depending on the results and remarks by officials from various countries.