USD/JPY Rebounds Ahead of US NFP Data Amid Ongoing Intervention
The Japanese yen's decline continued as investors considered recent interventions by the US and the Bank of Japan. After hitting 155.20 earlier in the week, the USD/JPY pair rebounded to 158.41 ahead of the US nonfarm payrolls (NFP) data release. This volatility was partly driven by intervention efforts from both countries.
According to the source, the US spent billions rescuing the currency, pushing the USD/JPY exchange rate down from last year's high of 163.96 to 155.20. The Bank of Japan also contributed with over $50 billion in interventions last week alone, totaling over $120 billion this year.
Economists expect NFP data to show a strong economy with added jobs and an unchanged unemployment rate. A better-than-expected report could push the USD/JPY back towards 160 resistance area. However, a disappointing US data release could trigger a fresh yen bid and break below 155.20.