Dollar-Yen Stuck in Lower 156 Range Ahead of US Employment Report

The dollar-yen exchange rate remained stuck in the lower 156 range on the Tokyo foreign exchange market, with muted trading ahead of the U.S. employment report. The pair initially fell to 155.29 as expectations for an early Federal Reserve rate hike receded, but later rebounded to 156.44 due to bargain-hunting.

However, follow-through buying failed to materialize, and the pair consolidated in the lower 156 range throughout the session. As of 5:00 p.m., dollar-yen stood at around 156.30, slightly weaker for the dollar and firmer for the yen compared with 156.34 at 3:00 p.m.

The prevailing market view is that a rate hike at the European Central Bank's governing council meeting scheduled for next week is already fully priced in, weighing on the euro's upside. Many Tokyo market participants are expected to refrain from aggressive position-building until the U.S. employment report is released.