The pair rises 0.16% as traders await US jobs data to gauge potential Federal Reserve rate moves this year.
The USD/JPY pair climbed 0.16% to 161.25 in European trading Tuesday, nearing levels unseen in over 40 years. The move reflects broad US Dollar strength, with the DXY index up 0.2% to 101.36 ahead of Thursday’s June Nonfarm Payrolls report.
Investors are closely watching the employment data for clues on the Federal Reserve’s next steps. The CME FedWatch tool currently shows an 80% probability of at least one rate hike in 2024. The Dollar’s outperformance comes as it gains against major currencies, including a notable rise versus the Euro.
Japanese officials have signaled potential intervention to support the Yen. Finance Minister Satsuki Katayama reiterated warnings about currency volatility, though no action has been taken yet.