Will the dollar-yen pair see some movement following the U.S. jobs report?

Will the dollar-yen pair see some movement following the U.S. jobs report?

08.05.2026 New

In the previous day’s U.S. currency trading, the U.S. dollar struggled to decline as hopes for a temporary ceasefire between the U.S. and Iran faded and concerns over the situation in the Middle East resurfaced. Speculation about potential Japanese currency intervention also remained a factor, and the dollar/yen pair traded within a range of 156.01 to 156.96 before closing near 156.85.Currently, the 157.00 level serves as a key resistance point. On the upside, the 157.00 to 157.50 range is likely to be watched, while on the downside, the 156.00 to 155.50 range is likely to be monitored. We will be watching today’s U.S. employment report to see if it provides clarity on the direction of the U.S. dollar.

European currencies saw the pound hold steady against the dollar, as political risks surrounding the UK local elections weighed on sentiment, while the dollar’s upside remained limited. The GBP/USD pair fluctuated within a range of 1.3590 to 1.3630 before rising to around 1.3620; the immediate focus is on whether it can hold above 1.3600.Resistance is likely to be seen around 1.3630 to 1.3650, while support is likely to be found around 1.3590 to 1.3550. With ECB President Lagarde scheduled to speak today, we will be watching to see how European currencies react to monetary policy developments.

Today’s key economic indicators include Germany’s March industrial production and March trade balance at 3:00 PM, remarks by ECB President Lagarde at 4:00 PM, the U.S. April employment report and Canada’s April employment report at 9:30 PM, and the preliminary U.S. May University of Michigan Consumer Sentiment Index and U.S. March wholesale inventories at 11:00 PM.Since the U.S. employment report releases nonfarm payrolls, the unemployment rate, and average hourly earnings simultaneously, the U.S. dollar tends to react strongly depending on the results. In particular, during New York trading hours, U.S. and Canadian employment data are released back-to-back, so it is important to carefully monitor the initial reaction of the U.S. dollar, Canadian dollar, and Japanese yen.