The pair recovers from Friday’s lows after weak US jobs data and mixed BoJ signals dampen Yen strength.
The USD/JPY pair climbed back above 158.00 on Monday, recovering from a Friday low of 156.68, as bulls target last week’s high near 158.65. The rebound follows softer US employment data, which reduced expectations for Federal Reserve rate hikes.
Japan’s Current Account posted its first deficit in 18 months, while the Bank of Japan’s summary of opinions revealed a divided committee on future rate hikes, undermining confidence in the Yen. US Nonfarm Payrolls fell by 23K in July, missing forecasts of an 80K gain.
Technical indicators show mild upward momentum, with the pair trading within an ascending channel from August 3 lows at 155.23.