Dollar-Yen Pair Holds Firm Ahead of US Employment Report
The dollar-yen pair maintained its strength in Tokyo trading on the 7th, holding firm around the mid-158 yen range despite initial caution over potential additional currency intervention by Japanese authorities. The morning session saw yen buying dominate, pushing the pair down to 158.21 yen, but dollar selling receded in the afternoon as the market adopted a wait-and-see stance ahead of the U.S. employment report.
The Nikkei 225 extended its losses, falling 76 points from the previous day's close, while the euro-yen pair traded in the mid-182 yen range and the euro-dollar pair saw narrow movements in the low 1.15 dollar range. The market remains on edge as it awaits the results of the U.S. jobs data, which is expected to provide crucial clues on the Federal Reserve's policy path.
Voices in the market suggest that 'depending on the U.S. employment report, the dollar-yen could recover to the 159 yen range or fall to the 157 yen range,' as nervous, directionless trading continues.