USD/JPY Jumps Ahead of NFP Data as Yen Intervention Resumes

The Japanese yen has resumed its downward trend after recent interventions by the United States and the Bank of Japan. The USD/JPY pair rebounded to 158.41 as traders bought the dip ahead of the US nonfarm payrolls (NFP) data, which is set to be released on Friday.

The Bank of Japan spent over $50 billion in interventions last week alone, bringing this year's total to over $120 billion. The US has intervened to support the yen due to concerns that Japan may sell its large holdings of US debt, which totals over $1.14 trillion, and now makes up more than 20% of all foreign-held US debt.

The upcoming NFP data is expected to reveal that the economy added over 88k jobs last month, with the unemployment rate remaining at 4.2%. A strong data print could push USD/JPY back toward the 160 resistance area.