Forex
Yen's Rebound Stalls at Key Inflexion Level Ahead of NFP
The yen's three-day rebound has lost momentum at the key inflexion level of 158.55 USD, raising bearish reversal risk.
A two-year yield spread between US Treasury Notes and Japanese Government Bonds has narrowed to 2.64%, which could support renewed yen strength if it continues.
The upcoming US non-farm payroll release on August 8th is a key catalyst for the currency pair, with a break below 157.95 potentially exposing supports at 157.30 and 156.32, while a move above 158.55 could open the door to 159.45.