Ella 
The USD/JPY pair found buying interest after falling below the 146.00 support level on Wednesday. USD/JPY is showing signs of recovery despite dollar weakness ahead of the release of US Automatic Data Processing (ADP) employment change data for August.
Market sentiment was calm, with S&P 500 futures trading sideways as investors awaited U.S. private employment data. U.S. stocks were heavily bought on Tuesday as weaker-than-expected jobs data boosted hopes of a soft landing from the Federal Reserve. Weak labor demand suggests the job market is losing flexibility.
Reduced demand for labor by U.S. businesses is also a result of falling worker resignation rates. With the labor market not as hot as it once was, employees seem reluctant to jump ship. For more information on the current state of the U.S. labor market, we’ll be keeping a close eye on ADP employment data.
According to forecasts, 195,000 new private sector jobs were added in August, compared with 324,000 in July. Investors should note that economic data over the past four months has been better than consensus. Higher-than-expected wage data could keep the Fed on track to raise interest rates.
Meanwhile, the yen’s weakness will continue as the Bank of Japan (BoJ) is not expected to exit its dovish monetary policy anytime soon. BoJ board member Naoki Tamura said it will take some time to judge whether Japan is meeting the BOJ’s price target in a sustainable manner. In addition, the order and speed at which the Bank of Japan exits its easing policy will depend on prevailing economic conditions.
In its annual economic white paper, the Japanese authorities said that “price and wage increases in Japan have widened since the spring of 2022,” adding that “the shift shows that the Japanese economy is in a 25-year struggle against deflation.” reached a turning point.”
