Yen's Strength Provisional as Focus Stays on Fundamentals Ahead of US Private Employment Data

The Japanese Yen has given back its early gains and stabilized at around 157.70 against the US Dollar during the European trading session on Wednesday.

Investors have turned cautious regarding the sustainability of the Yen's recent strength, with market experts believing that more measures are needed to make it sustainable.

Analysts at MUFG/BTMU argue that recent official efforts to stabilize the Yen are likely to be modest in scope and can only buy time, as 'there will need to be a change in fundamentals as well to encourage a sustainable reversal of the yen weakening trend that has been in place over the last five years.'

The US Dollar trades marginally lower ahead of the US ADP Employment Change data for July, which is expected to have a meaningful impact on the Federal Reserve's interest rate expectations.