The USD/JPY reached its highest point since March 2020.
Following a two-day surge, the pair appears to have entered a consolidation phase.
Nonfarm payrolls in the United States are predicted to increase by 700,000 in June.
The USD/JPY pair made remarkable gains in the second half of the week, peaking at 111.66 on Friday, its highest level since March 2020, before entering a stabilization period. At the time of writing, the pair was trading at 111.39, down 0.1 percent for the day.
The USD/JPY appreciated on Wednesday and Thursday as a result of broad-based USD gains. Following Wednesday’s positive ADP private-sector employment report, the ISM Manufacturing PMI’s Prices Paid component hit a new high in June, according to Thursday’s data. Following this figures, the US Dollar Index (DXY) extended its weekly rise, reaching 92.69 on Friday, its highest level in nearly three months. The DXY is currently trading at 92.59, with minor daily gains.
Despite the US dollar’s continued rise, the 1.3 percent drop in the benchmark 10-year US Treasury bond yield appears to be keeping USD/JPY in the red.
The US Bureau of Labor Statistics will release the June labor market data later in the day. Following a 559,000 gain in May, Nonfarm Payrolls (NFP) is predicted to grow by 700,000. Furthermore, the unemployment rate is expected to drop to 5.7 percent from 5.8 percent.
NFP Predictions: Here are four reasons why June’s jobs data could be a downer for the currency./n
