With U.S. employment data on the horizon, will the dollar-yen pair test the 159-yen level?

With U.S. employment data on the horizon, will the dollar-yen pair test the 159-yen level?

07.08.2026 New

In the U.S. currency market the previous day, initial jobless claims came in at 199,000, falling short of the market forecast of 205,000.Nonfarm labor productivity for the April–June quarter rose 1.4% on an annualized basis from the previous quarter, exceeding market expectations of 0.6%, while unit labor costs rose only 1.3% on an annualized basis from the previous quarter.In addition to the recognition of a resilient labor market, rising U.S. Treasury yields and concerns over the situation in the Middle East also supported the U.S. dollar, pushing the dollar/yen pair up to the mid-158 yen range.During Asian trading hours today, the pair extended its gains to around 158.50 yen, and resistance is likely to be seen around 159.00 yen, while support is expected around 158.00 yen.

European currencies saw the UK’s July Construction Purchasing Managers’ Index (PMI) come in at 44.7, exceeding market expectations of 40.0 and the previous reading of 38.4. However, as the figure remained below the 50-point threshold that marks the boundary between expansion and contraction, the pound’s reaction was limited.Amid speculation about further interest rate hikes by the Bank of England (BOE) and as markets assessed the situation in the Middle East, the pound traded around $1.3460 during European trading hours the previous day.During today’s Asian session, the pair has weakened to around $1.3450, with resistance likely around $1.3500 and support expected in the $1.3400–$1.3450 range.

Today’s economic indicators include Germany’s June industrial production and trade balance at 3:00 p.m., and Switzerland’s July SECO Consumer Confidence Index at 4:00 p.m. At 9:30 p.m., the U.S. July nonfarm payrolls, unemployment rate, and average hourly earnings are scheduled to be released, along with Canada’s July employment statistics.U.S. nonfarm payrolls are expected to rise by 80,000 month-over-month, accelerating from the previous increase of 57,000. The unemployment rate is forecast at 4.2%, while average hourly earnings are expected to rise 0.3% month-over-month and 3.5% year-over-year.We will be watching the dollar-yen pair’s reaction to see how the U.S. employment report results will influence expectations for monetary policy in September.