Japanese Yen edges higher after weak US employment data

USD/JPY edges lower as easing Middle East tensions and falling Oil prices weigh on the US Dollar.
Weak ADP employment data and fading Fed rate-hike expectations add pressure on the Greenback.
Analysts say intervention has supported the Yen, but domestic policy follow-through is needed for lasting gains.

Vishal Chaturvedi FXStreet

USD/JPY trades under modest pressure on Wednesday as easing tensions in the Middle East and weaker US labour market data weigh on the US Dollar (USD). At the time of writing, the pair trades around 157.45, down 0.2% on the day.

The latest headlines suggest that the Strait of Hormuz could reopen soon, pushing Oil prices lower. US President Donald Trump said Washington had held “very good discussions” with Iran during all-day negotiations on Tuesday. Axios reported that the United States, Iran and Oman are close to an interim deal that could be announced as early as Wednesday.

Falling Oil prices ease global inflation concerns, reducing pressure on major central banks to raise interest rates. According to the CME FedWatch Tool, the probability of a September Fed rate hike has fallen to around 56% from 67% a day earlier.

The US Dollar Index (DXY), which tracks the Greenback’s value against a basket of six major currencies, trades around 99.66, down 0.2% on the day. If the Strait reopens and Oil prices extend their decline, easing inflation expectations could further weigh on the US Dollar and help the Japanese Yen (JPY) extend its intervention-driven recovery.

However, strategists at BNY Mellon argue that recent “coordinated intervention has bought time but hasn’t materially increased foreign JPY holdings.” They note that “investors remain net long JPY, but exposure is well below H1 2026 levels and won’t rebuild without credible domestic follow-through: Bank of Japan (BOJ) tightening, fiscal consolidation and structural reform.”

Meanwhile, attention is also on US labour market data. ADP Employment Change rose by 44K in July, missing expectations of 70K and slowing from 98K in June. The report follows Tuesday’s softer-than-expected JOLTS Job Openings data. Traders now look ahead to Friday’s Nonfarm Payrolls (NFP) report for further clues about the US labour market.

Fed officials broadly agree that the labour market is balanced, allowing policymakers to focus on restoring price stability. Minneapolis Fed President Neel Kashkari said in a CNBC interview on Wednesday that he believes “now is the time to start slowly moving interest rates up.”

Japanese Yen Price Today

The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the New Zealand Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.19%	-0.22%	-0.16%	-0.11%	-0.07%	0.33%	-0.02%
EUR	0.19%		-0.03%	0.05%	0.08%	0.11%	0.52%	0.17%
GBP	0.22%	0.03%		0.06%	0.11%	0.14%	0.56%	0.19%
JPY	0.16%	-0.05%	-0.06%		0.04%	0.08%	0.48%	0.11%
CAD	0.11%	-0.08%	-0.11%	-0.04%		0.03%	0.47%	0.08%
AUD	0.07%	-0.11%	-0.14%	-0.08%	-0.03%		0.42%	0.05%
NZD	-0.33%	-0.52%	-0.56%	-0.48%	-0.47%	-0.42%		-0.35%
CHF	0.02%	-0.17%	-0.19%	-0.11%	-0.08%	-0.05%	0.35%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Author

Vishal Chaturvedi

FXStreet

I am a macro-focused research analyst with over four years of experience covering forex and commodities market. I enjoy breaking down complex economic trends and turning them into clear, actionable insights that help traders stay ahead of the curve.

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