[USD/JPY] BOJ Rate Hike Speculation and Jobs Report

During Tokyo trading hours, comments from BOJ board member Nakamura, stating, “I am not opposed to a rate hike,” caused the USD/JPY to drop. The pair started at 150.77 yen but fell to 149.66 yen.

Later, the USD/JPY rose to 150.69 yen as U.S. long-term interest rates increased, but it failed to reach the day’s high in the Tokyo market and lost momentum.

Today’s U.S. jobs report is expected to show an increase in job numbers, recovering from the previous month. However, the unemployment rate may rise, and average wages may decrease. These factors could support expectations for Federal Reserve rate cuts.

With market liquidity still low, traders should watch for downside risks.