According to FXStreet, USD/JPY is trading in a narrow range on October 4, holding on to gains made last week and hitting its highest level since August 19. The current price remains below 147.00, little changed on the day, as traders await the results of the important US jobs report.
The US is expected to have added 140,000 jobs in September, down from 142,000 the previous month. The unemployment rate is likely to remain unchanged at 4.2%. The report could influence the Fed’s decision to cut interest rates in November, which could impact the US dollar and the USD/JPY pair.
Investors have reduced expectations of a sharp rate cut by the Fed. The US labor market remains strong. This helped push the value of the dollar to a one-month high on Thursday, October 4.
In addition, expectations of a rate hike in Japan in 2024 have also decreased. The snap election in Japan on October 27 could weaken the Japanese Yen, creating an opportunity for USD/JPY to continue to rise.
Still, USD/JPY is on a strong uptrend. If there is no surprise in the US jobs report, USD/JPY could continue to rise. However, conflicts in the Middle East could strengthen the Japanese Yen, which is considered a safe-haven asset. This could make investors hesitant to bet on USD/JPY.
According to Lao Dong, at 10:00 a.m. on October 4, the exchange rate of the Japanese Yen against the US dollar is currently hovering around 146.36 - 146.94 JPY/USD.
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