Will the Dollar-Yen Pair See Some Movement Following the U.S. Employment Report?

Will the Dollar-Yen Pair See Some Movement Following the U.S. Employment Report?

08.05.2026

In the U.S. currency market the previous day, the U.S. dollar struggled to decline as hopes for a temporary ceasefire between the U.S. and Iran faded and concerns about 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 level for a potential rebound, with the upper range likely to be around 157.00 to 157.50 and the lower range around 156.00 to 155.50. We will be watching today’s U.S. employment report to see if it provides a clearer direction for the U.S. dollar.

Among European currencies, the pound held up slightly against the dollar as political risks surrounding the U.K. local elections weighed on sentiment, while the dollar’s upside remained limited.The GBP/USD pair fluctuated within a range from the 1.3590s to the 1.3630s 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. ECB President Lagarde is scheduled to speak today, and we will be watching to see how European currencies react to monetary policy developments.

Today's economic indicators include Germany's March industrial production and March trade balance at 3:00 p.m.,a speech by ECB President Lagarde at 16:00, the U.S. and Canadian April employment reports at 21:30, and the preliminary U.S. University of Michigan Consumer Sentiment Index for May and U.S. wholesale inventories for March at 23:00.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 at the same time, so it is important to carefully monitor the initial reactions of the U.S. dollar, Canadian dollar, and Japanese yen.