USD/JPY Holds Gains After Labor Data as NFPs Loom

The Japanese Yen has continued to weaken against the US Dollar (USD), trading near 159.20 on Thursday after a coordinated intervention last week.

Initial Jobless Claims came in at 199K, lower than the expected 202K, while Challenger Job Cuts eased to 33.4K in July from 45.8K.

The labor market is showing signs of cooling down, but markets are looking forward to Friday's Nonfarm Payrolls report, which is expected to show an 80K gain in July with the Unemployment Rate remaining at 4.2% and Average Hourly Earnings holding steady at 0.3% on the month and 3.5% on the year.

The Federal Reserve has been hinting at raising interest rates to address inflation, which could weigh on the Japanese Yen further.