USD/JPY Tumbles as Weak US Employment Data Weighs on Dollar
The Japanese Yen has edged higher against major currencies after weak US employment data was released. The USD/JPY pair trades at 157.45, down 0.20% on the day.
The recent easing of tensions in the Middle East and lower oil prices have weighed on the US Dollar (USD). Oil prices are declining as the Strait of Hormuz could reopen soon, following reports that the United States, Iran, and Oman are close to an interim deal. This has reduced pressure on major central banks to raise interest rates.
According to the CME FedWatch Tool, the probability of a September Fed rate hike has fallen to around 56% from 67% a day earlier. The US Dollar Index (DXY) trades at 99.66, down 0.21% on the day.
However, strategists at BNY Mellon argue that recent intervention has bought time but hasn't increased foreign JPY holdings. They note that investors remain net long JPY, but exposure is below H1 2026 levels and won't rebuild without credible domestic follow-through from the Bank of Japan (BOJ).