USD/JPY remains near recent highs after Fed officials emphasize persistent inflation risks despite cooling labor data.
The Japanese Yen trades modestly lower against the US Dollar, with USD/JPY holding below 161.90. The Dollar found support after New York Fed President John Williams highlighted steady economic growth and elevated inflation, reinforcing expectations for prolonged restrictive policy.
Recent US labor data showed private hiring slowed, with the ADP Employment Change 4-week average easing to 21K from 24.25K. While this typically pressures the Dollar, Fed caution on inflation offset potential weakness. Williams noted the labor market remains stable but warned inflation risks persist.
Intervention concerns also cap Yen losses, as Japanese authorities signal readiness to act against excessive currency moves. USD/JPY remains near multi-decade highs, keeping traders cautious around the 162.00 level.