The USD/JPY pair remained deep in negative territory on Friday as the US Dollar weakened against its major rivals following the release of the July jobs report. Nonfarm Payrolls in the US rose by 114,000, falling short of the market expectation of 175,000.
As a result, USD/JPY extended its weekly slide and reached its lowest level since March near 147.00. At the time of press, the pair was trading at 147.80, down 1% on a daily basis.
The Japanese Yen was the strongest currency this week, with significant gains against major currencies such as the British Pound. The heat map displaying percentage changes of major currencies against each other highlighted the strength of the Japanese Yen.
The disappointing US jobs report led to broad-based selling pressure on the US Dollar, causing USD/JPY to decline further. The US Dollar Index was down 0.85% on the day at 103.46.
The Bank of Japan’s unexpected decision to raise its policy rate earlier in the week also contributed to the Japanese Yen rally. As a result, USD/JPY was down over 3.5% on a weekly basis.
The Japanese Yen is influenced by various factors, including the performance of the Japanese economy, the Bank of Japan’s policy decisions, and risk sentiment among traders. The currency is often seen as a safe-haven investment during times of market stress.
Overall, the USD/JPY pair faced significant downward pressure on Friday due to the weak US jobs data and the strength of the Japanese Yen. Investors will be closely watching for any further developments that could impact the currency pair in the coming days.
