Yen Buying Momentum Tested as USD/JPY Hangs in Lower 154 Range

The foreign exchange market is focusing on whether yen buying momentum continues after the U.S. Labor Day holiday. The previous session saw yen buying strengthen, and USD/JPY briefly fell to the lower 154 range.

With monetary policy announcements from both Japan and the U.S. scheduled for next week, market participants are attempting to gauge the trajectory of U.S. long-term yields and the policy stances of both central banks.

The August jobs report showed nonfarm payrolls increased by 162,000 month-over-month, far surpassing market expectations. The unemployment rate came in at 4.1%, while average hourly earnings rose 0.3% month-over-month and 3.1% year-over-year.