Ella 
USD/JPY was trading within Thursday’s trading range late in the Asian session on Friday, below the psychological 150.00 level. The yen remains weak as the Federal Reserve’s dovish outlook on interest rates dampens the appeal of the dollar. Additionally, a stronger yen also weighed on major currencies as the Bank of Japan adopted a more aggressive tightening policy than expected.
Ahead of the release of US July non-farm payrolls (NFP) data at 20:30 Beijing time, market sentiment remains risk averse. S&P 500 futures fell sharply in Asian trading.
Economists expect 175,000 new non-agricultural jobs to be added in July, down from the previous figure of 206,000. The unemployment rate is expected to hold steady at 4.1%.
Investors will pay close attention to average hourly earnings data, which is a key indicator of wage growth. Wage growth will stimulate consumer spending and ultimately affect price pressures. It is estimated that the average annual wage growth rate will slow to 3.9% from the previous value of 3.7%, and the month-on-month wage growth rate will remain stable at 0.3%.
Meanwhile, the U.S. dollar index (DXY), which tracks the greenback’s value against six major currencies, was lower at 104.23.
However, the yen has performed strongly since the Bank of Japan raised interest rates by 25 basis points (10 basis points expected). Additionally, the Bank of Japan has pledged to halve its bond purchases in early 2026. Bank of Japan Governor Kazuo Ueda left the door open to more rate hikes this year and remained confident of further increases in price pressures and improving economic conditions.
