- USD/JPY trades nearly flat at 145.46 after dropping to a three-week low of 144.44.
- US Nonfarm Payrolls for August beat estimates, but Unemployment Rate misses, keeping the pair in check.
- Rising US Treasury bond yields lend some support to the USD.
The Greenback (USD) stages a recovery against the Japanese Yen (JPY) after dropping to a three-week low of 144.44 amid a busy schedule in the United States (US) economic docket. US Treasury bond yields advance, boosting the USD. The USD/JPY is trading at 146.196, gains of 0.45%.
Greenback recovers from three-week low vs. Yen, despite mixed signals in US labor market
The busiest US economic docket finalized, as the latest employment report, namely the Nonfarm Payrolls for August, was above estimates of 177K, with the economy adding 187K, unchanged compared to July’s data. Even though the report was good, and the Greenback should have witnessed a more robust appreciation, it did not. The Unemployment Rate closed towards the US Federal Reserve’s forecast of 4.1% for 2023, which was 3.8% YoY, missing estimates of 3.5%, the highest level since February 2022.
In other data, manufacturing business activity improved, as shown by the ISM Manufacturing PMI for August, rose by 47.6, smashed July’s 46.4 drop, and above estimates of 47. Most subcomponents of the index rose, except for new orders, which are set to improve as factory inventories remained at lower levels.
On the Japanese front, manufactury activity shrank, blamed on costs as revealed by the Jibun Bank Manufacturing PMI, which dropped to 49.6, below the prior month’s 49.7, and the third month the index was below the 50 threshold that separated expansion from contraction.
Given the fundamental backdrop, the USD/JPY remains bullish but subject to an FX intervention by Japanese authorities, which has remained vigilant. On this theme, Japanese Finance Minister Shunichi Suzuki said markets should set currencies, though sudden moves are undesirable, and added that’s closely watching currency moves.
USD/JPY Price Analysis: Technical outlook
Price action depicts the pair dipping to a lower low than the previous one, at 144.53, opening the door for a deeper correction, but unless sellers stepped in and dragged the USD/JPY towards the 145.00 figure, bulls remain in control. Next resistance emerges at 146.00, followed by the year-to-date (YTD) high at 147.38.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
NZD/USD rises toward 0.6150 after the RBNZ decides to keep OCR unchanged
The NZD/USD pair rebounded after two days of losses, trading around 0.6140 during Asian hours on Wednesday following the Reserve Bank of New Zealand's (RBNZ) interest rate decision. The central bank maintained its Official Cash Rate (OCR) at 5.5% for the seventh consecutive meeting.
AUD/USD keeps range below 0.6700 amid cautious markets
AUD/USD keeps its range trade intact in Asian trading on Wednesday, consolidating the previous drop below 0.6700. Markets turn cautious ahead of the Fed Minutes and Nvidia earnings report, leaving the higher-yielding Aussie on the edge.
Gold price clings to mild losses ahead of FOMC Minutes
Gold price trades on a negative note on Wednesday after retreating from a record high on Monday. Members of the Federal Reserve warned that the US central bank needed much more convincing that inflation was easing before it could begin cutting interest rates, emphasizing the Fed is likely to keep rates higher for longer.
DeFi and Layer 2 coins rally following Ethereum's rise
Ethereum ecosystem tokens have surged following ETH's recent rally after optimism that the Securities & Exchange Commission would approve spot ETH ETFs.
Ready for NVDA
S&P 500 saw upswing rejected, making it remain in a tight range – but the sellers aren‘t in control. Nasdaq had one of its days of outperformance, with select names sending signals as to what to expect from NVDA earnings, already now.