Can the USD/JPY Hold the 158-Yen Level Following the U.S. Employment Report?

Can the USD/JPY Hold the 158-Yen Level Following the U.S. Employment Report?

10.08.2026 New

In the U.S. currency market on the previous business day, July nonfarm payrolls fell by 23,000 from the previous month, falling well short of market expectations for an increase of 80,000.The June figure was also revised downward from an increase of 57,000 to an increase of 20,000, while the unemployment rate fell to 4.1% from 4.2% the previous month. In response to the weak employment data, expectations for a September interest rate hike receded, and the U.S. dollar fell against the yen.The USD/JPY pair traded within a range of 157.02 to 158.58 yen and ended the week around 157.81 yen. The trading range for the previous trading day was approximately 1 yen 56 sen.Today, the pair has rebounded to around 158.40 yen, and resistance is likely to be seen around 158.50–158.60 yen, while support is expected around 157.80–158.00 yen.

European currencies rose as Germany’s June industrial production increased by 0.2% month-over-month, marking the third consecutive month of growth. Exports also rose by 0.9% month-over-month, extending their growth streak to five months, highlighting the resilience of the German economy. Subsequently, the euro strengthened against the U.S. dollar as selling pressure on the dollar intensified following the release of weak U.S. employment data.The euro/dollar pair traded within a range of $1.1517 to $1.1581, ending the week near $1.1559. The trading range for the previous trading day was approximately 64 pips.Today, the pair is trading around $1.1550, with resistance likely near $1.1580 and support expected in the $1.1520–$1.1530 range.

Today’s economic indicators included the release of Japan’s June balance of payments at 8:50 a.m., which showed a current account deficit (unadjusted for seasonal variations) of 92.3 billion yen. This marks the first deficit in 17 months and fell significantly short of market expectations for a surplus of 1.512 trillion yen.In Japan’s July Economic Watchers Survey released at 14:00, the Current Conditions DI stood at 45.7, while the Future Outlook DI was 45.8. With few major economic indicators from Europe and the U.S. today, we will be monitoring speculation regarding monetary policy in the wake of last weekend’s U.S. employment report, as well as the movement of the dollar-yen pair, which has returned to the 158-yen range.