All eyes are on the battle for the 160-yen level in the dollar-yen exchange rate ahead of the U.S. jobs report
05.06.2026
- U.S. May Nonfarm Payrolls and Unemployment Rate
- Eurozone GDP (January–March, final figure)
In the U.S. currency market the previous day, the number of new unemployment insurance claims rose to 225,000 from the previous reading of 212,000, exceeding market expectations and prompting concerns about a partial softening in the labor market.On the other hand, driven by demand for safe-haven assets amid Middle East tensions and a wait-and-see attitude ahead of today’s U.S. employment report, the dollar-yen pair continued to trade near the 160 yen level.In the Tokyo market, the pair traded within a range of 159.60 to 160.05 yen, settling near 159.90 yen at 17:00.The immediate focus is on whether the pair can clearly break above the key 160.00 level; on the upside, the 160.00 to 160.50 range is likely to act as resistance. On the downside, the key will be whether the pair can hold above the 159.60 to 159.00 range.With the U.S. May employment report scheduled for today, we will be watching to see if the U.S. dollar continues to trade at elevated levels.
European currencies saw the euro trade around 1.1600 as market participants focused on the weakness in consumer spending, following the release of April eurozone retail sales data, which showed a month-on-month decline of 0.4% after a previous increase of 0.8%. Meanwhile, with expectations of an interest rate hike still lingering ahead of next week’s ECB meeting, the euro/dollar pair remained range-bound around the 1.1600 level.In the Tokyo session, the pair traded within a range of 1.1598 to 1.1612, settling in the low 1.1600s as of 5:00 PM.The immediate focus is on whether the EUR/USD pair can hold near 1.1600, with resistance likely around 1.1630 to 1.1650 and support around 1.1580 to 1.1560.Final eurozone GDP figures are scheduled for release today, and we will be looking to assess the balance between concerns over an economic slowdown and the outlook for monetary policy.
Today’s key economic indicators include France’s April trade balance at 15:45, the Eurozone’s Q1 GDP (final reading) at 18:00, the U.S. May nonfarm payrolls change, U.S. May unemployment rate, and U.S. May average hourly earnings,Canada’s May employment change and unemployment rate, the Ivey PMI at 23:00, and remarks by Bank of England (BOE) Governor Bailey at 27:00.Particularly during New York trading hours, the U.S. employment report tends to influence the direction of the USD/JPY pair around the 160 yen level. We will carefully monitor the reactions of the U.S. dollar, the yen, and the euro while reviewing the employment figures, unemployment rate, and average hourly earnings together.
Author: Keisuke Sakurai
