USD/JPY Forecast: Holding ground ahead of US employment figures

Valeria Bednarik FXStreet

USD/JPY Current price: 109.15

Japan´s April Jibun Bank Services PMI improved to 49.5 from 48.3 previously.
The US is expected to have added roughly 1 million jobs in April.
USD/JPY is technically neutral, needs to break above 109.70 to gain bullish strength.

The USD/JPY pair is stuck around the 109.10 price zone, paring losses amid a better market mood but on hold, ahead of the US Nonfarm Payrolls report. The greenback keeps losing ground against most major rivals, as stocks are firmly higher, backed by encouraging data released ahead of the event. At the same time, US Treasury yields remain depressed near weekly lows, with the yield on the benchmark 10-year note currently around 1.57%. Yields are seen as a measure of potential inflationary pressures, cooled this week by multiple Federal Reserve officials.

Japan published the April Jibun Bank Services PMI, which improved to 49.5 from 48.3 previously, and the Monetary Base for the same month increased by 24.3%. Regarding US employment, the country is expected to have added 978K new jobs in April, while the unemployment rate is foreseen contracting to 5.8% from the current 6%. Employment-related figures released ahead of the event suggest that the headline number could beat forecasts.

USD/JPY short-term technical outlook

The near-term picture for USD/JPY is neutral, as the pair has been trading in an 80 pips range ever since the week started. In the 4-hour chart, the pair is trading between directionless moving averages, with the 20 and 200 SMAs providing dynamic resistance in the 109.20/30 price zone. Technical indicators are directionless around their midlines. The pair needs to advance beyond 109.69, the weekly high, to gather bullish strength and extend its rally beyond the 110.00 price zone.

Support levels: 108.70 108.25 107.90

Resistance levels: 109.25 109.70 110.10

View Live Chart for the USD/JPY

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD stays firm near 1.1800 amid USD retreat

EUR/USD rebounds after two days of losses, holding around 1.1800 in European trading on Tuesday. The pair benefits from a broad US Dollar retreat as markets weigh the partial government shutdown-led economic data disruption against the geopoltical de-escalation.

GBP/USD pares gains below 1.3700 as mood turns cautious

GBP/USD is consolidating its recent uptick to near 1.3710 in the European session on Tuesday. The Pound Sterling pares gains against the US Dollar as the market mood turns cautious. Meanwhile, traders resort to repositioning ahead of the Bank of England's first policy decision of 2026.

Gold jumps 6% to challenge $4,950

Gold recovers further from its lowest level since January 6 and challenges the $4,950 mark in the European session on Tuesday. The US Dollar edges lower and moves away from an over one-week high, assisting the commodity to regain positive traction following a steep decline over the past two days.

Zilliqa rallies over 20% ahead of Cancun EVM upgrade

Zilliqa price is extending its gains, rallying over 20% to $0.006 on Tuesday after soaring nearly 34% the previous day. The upcoming Cancun upgrade this week is boosting investor sentiment, despite broader weakness in the crypto market. ZIL continues to attract strong buying interest, supported by rising trading activity and improving derivatives metrics.

Macro outlook improves despite the geopolitics

In the headlines, geopolitical have overshadowed an otherwise benign macro environment in early 2026. While market jitters around the US intervention in Venezuela and the sudden tariff threats over the control of Greenland faded quickly, the events have left a sense of unease of what might come next.

Zilliqa Price Forecast: ZIL rallies over 20% ahead of Cancun EVM upgrade

Zilliqa (ZIL) price is extending its gains, rallying over 20% to $0.006 on Tuesday after soaring nearly 34% the previous day. The upcoming Cancun upgrade this week is boosting investor sentiment, despite broader weakness in the crypto market.