In early London trading, USD/JPY was holding in the lower half of the 156 range, while EUR/USD was consolidating around 1.1630. With the market adjusting after the previous day's sharp drop and awaiting tonight's U.S. employment report, trading remained subdued, although the data was in focus.
In early London trading, USD/JPY was trading around 156.30, while EUR/USD was consolidating within a narrow 1.1623–1.1633 range. With the yen market taking center stage, dollar pairs continued to lack a clear catalyst for a major move.
USD/JPY found support around the Tokyo morning low near 155.30, prompting a rebound, and rose to around 156.45 in the afternoon. The move is viewed as a correction following the sharp drop from the 160 range the previous day.
The market is focused on the U.S. employment report due at 9:30 p.m. Japan time, and the employment data could alter the direction of trading in the U.S. market.
EUR/USD aside, GBP/USD was also seen rising from around 1.3523 to around 1.3549, but the overall range remained limited to around 26 points. Moves in USD/JPY and other major currencies remained confined to a narrow range.