The pair climbed 0.4% from Wednesday’s lows as Iran ceasefire hopes faded ahead of U.S. jobs data.
USD/JPY rose to 156.90 on Thursday, recovering 0.4% after sliding to 155.04 the prior day, its lowest level since early May. The rebound followed waning optimism over an Iran-Israel ceasefire, which had previously weighed on the dollar.
The pair had fallen sharply amid broader risk aversion, but geopolitical tensions and anticipation of Friday’s U.S. nonfarm payrolls report supported a modest rebound. Analysts expect the jobs data to influence Federal Reserve policy expectations, with strong figures potentially bolstering the USD.
Markets remain cautious as the NFP release approaches, with traders balancing geopolitical risks against U.S. economic indicators.