USD/JPY extends losses nearing 155.00 ahead of US Retail Sales data
- USD/JPY drops for the second consecutive day, hitting one-week lows near 155.00.
- Weak US employment figures have prompted investors to ramp up bets of Fed easing.
- In Japan, Takaichi's victory in the elections has not hurt the Yen, for now.
The US Dollar (USD) is trading lower against the Japanese Yen (JPY) for the second consecutive day on Tuesday. The pair changes hands at one-week lows right above 155.00, down from 157.66 highs on Monday, as investors brace for December’s US Retail Sales report.
A series of weak US employment reports released last week, along with comments from White House adviser Kevin Hassett warning about slow employment growth in the coming months, have boosted hopes for Federal Reserve (Fed) rate cuts in 2026, and are adding downward pressure on the US Dollar.
Hassett’s remarks have lowered expectations for the January Nonfarm Payrolls (NFP) report, which has been delayed until Wednesday because of last week’s partial government shutdown.
US Dollar falters ahead of key US data
Before that, US Retail Sales data, due later on Tuesday, is expected to show a mild slowdown in December. These figures, together with Friday’s US Consumer Price Index report, will likely shed some light on the Fed’s monetary policy plans and will set the US Dollar’s near-term direction.
The Yen, on the other hand, maintains its bid tone, despite the strong victory of Prime Minister Sanae Takaichi in last weekend’s elections. Takaichi is expected to continue with her expansive fiscal policy, but the proposal of finding alternative funding sources to finance tax cuts without issuing new debt has soothed investors.
Apart from that, Japan’s Finance Minister, Satsuki Katayama, and the top Currency Diplomat Atsushi Mimura, warned on Monday about immediate action in case of speculative action against the Yen, which has provided additional support to the JPY.
Japanese Yen Price This week
The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies this week. Japanese Yen was the strongest against the US Dollar.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.77% | -0.52% | -1.47% | -0.77% | -0.93% | -0.51% | -1.39% | |
| EUR | 0.77% | 0.26% | -0.78% | 0.00% | -0.16% | 0.26% | -0.62% | |
| GBP | 0.52% | -0.26% | -0.72% | -0.26% | -0.42% | 0.00% | -0.88% | |
| JPY | 1.47% | 0.78% | 0.72% | 0.75% | 0.59% | 1.03% | 0.00% | |
| CAD | 0.77% | 0.00% | 0.26% | -0.75% | -0.06% | 0.27% | -0.62% | |
| AUD | 0.93% | 0.16% | 0.42% | -0.59% | 0.06% | 0.43% | -0.46% | |
| NZD | 0.51% | -0.26% | -0.01% | -1.03% | -0.27% | -0.43% | -0.89% | |
| CHF | 1.39% | 0.62% | 0.88% | -0.01% | 0.62% | 0.46% | 0.89% |
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).
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Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
