Thin US holiday trading sees the pair stabilize as traders reassess Fed rate cut bets following weaker US jobs data.
The USD/JPY pair climbed to 161.30 on Friday, recovering from a two-week low of 160.49 hit earlier in the session. Light volume due to the US Independence Day holiday contributed to modest price swings as markets digested Thursday’s softer US labor market figures.
US Nonfarm Payrolls missed expectations, fueling speculation the Federal Reserve may ease policy sooner than anticipated. The data weighed on US Treasury yields, initially dragging the dollar lower before a partial rebound as traders adjusted positions. The pair now hovers near its 100-period Simple Moving Average on the 4-hour chart.
Technical indicators suggest a neutral near-term bias, with resistance at 161.39 and 161.91 capping upside. The Relative Strength Index near 45 signals fading momentum without clear directional conviction.