Market participants are likely to keep a close eye on the movement of the USD/JPY pair, which fell following the release of U.S. employment data

Market participants are likely to keep a close eye on the movement of the USD/JPY pair, which fell following the release of U.S. employment data

07.08.2023

Last weekend, the U.S. dollar continued to fall against the yen following the release of the U.S. July employment report on Friday, the 4th, which showed nonfarm payrolls of 187,000—below the market forecast of 199,000.The USD/JPY pair fell by approximately 130 pips from 142.889 to 141.549, breaking below the key support level of 142 yen that had been closely watched recently. However, on the short-term hourly chart, the 200-day SMA is acting as a support line, so we will be watching closely to see if the US dollar can stage a recovery during European trading hours.

European currencies saw the euro fluctuate against the yen after the June retail sales figures for the eurozone, released last weekend, showed an improvement year-on-year, moving from a 2.9% decline in the previous month to a 1.4% decline.EUR/JPY traded within a narrow range between 155.927 and 156.610, with the 200-period simple moving average (SMA) on the hourly chart acting as support. Technically, EUR/JPY is positioned just below the 20-period moving average (MA) on the daily chart, creating a volatile environment where the pair could move in either direction; therefore, we should carefully monitor price movements during U.S. trading hours.

Today’s schedule includes Japan’s Economic Sentiment Index at 2:00 PM, Switzerland’s Employment Statistics at 2:45 PM, Germany’s Industrial Production and the UK’s Halifax House Price Index at 3:00 PM, South Africa’s Foreign Exchange Reserves,Norway’s Manufacturing Production at 17:30, the Eurozone Investor Sentiment Index at 21:00, remarks by Fed Governor Bowman and Atlanta Fed President Bostic at 21:30, remarks by MPC member Pill at 25:00, and U.S. Consumer Credit at 28:00.We will closely monitor the movement of the USD/JPY pair, which fell following the release of the U.S. employment report.

Past Market Reports

1. 21.04.2026New

   With the euro-Australian dollar pair hitting new lows this month, attention is turning to how much further it might fall

2. 20.04.2026New

   Will the market wait and see how much further the U.S. dollar can rise against the yen?

3. 17.04.2026New

   Will the weakening Swiss franc recover? Attention is turning to price movements during European trading hours.

4. 16.04.2026New

   Market participants are likely keeping a close eye on the upside potential of the euro, which has risen against the U.S. dollar

5. 15.04.2026New

   Should we keep an eye on remarks by key figures in the U.S. and try to gauge the direction of currency strength?

6. 14.04.2026

   Market participants are likely watching for signs of a rebound in the Canadian dollar, which fell against the U.S. dollar following the release of employment figures

7. 13.04.2026

   Will the weakening Swiss franc continue to strengthen against the yen, or should we wait and see?

8. 10.04.2026

   Will the U.S. dollar, which has fallen against the yen, continue its downward slide, or should we wait and see how the market moves?

9. 09.04.2026

   Should we keep an eye on the upside for European currencies that have risen against the U.S. dollar?

10. 08.04.2026

    Market participants may be wary of further downside potential for the U.S. dollar, which has weakened amid concerns over the situation in Iran