USD/JPY soars to new highs after strong US jobs data dampens rate cut hops

USD/JPY climbs over 0.90% to 148.05 after strong US jobs report and higher Treasury yields.
January's 353K job additions lessen Fed rate cut forecasts, indicating a tighter labor market.
Rises in US 10-year Treasury yield and Dollar Index signal robust confidence in the US economy.
Anticipation of BoJ ending negative rates complicates USD/JPY outlook, eyes on March meeting.

Christian Borjon Valencia FXStreet

The USD/JPY bounces from around the 146.00 handle and prints a new three-day high at 148.05 after a strong US Nonfarm Payrolls report pushed aside Federal Reserve’s rate cut speculations amongst the investment community. At the time of writing, the major exchanges hands at 147.77, gains more than 0.90%.

USD/JPY leaps as strong employment figures reinforce US Dollar strength, eyes on BoJ's next move

US Nonfarm Payrolls data was outstanding, with the economy creating 353K new jobs, crushing forecasts of 180K, and above December’s numbers upward revised from 216K to 333K. The Unemployment Rate was flat compared to last month's data at 3.7%, while Average Hourly Earnings (AHE) rose. Monthly AHE came at 0.6%, up from 0.4%, and year-over-year clocked 4.5%, up from 4.4%.

Following the report, the US 10-year Treasury note yield, which closely correlates with the USD/JPY pair, soared from around 3.90% to 4% and gained more than ten basis points (bps). The US Dollar Index (DXY), which tracks the buck´s value versus a basket of peers, advances 0.67%, up at 103.76, after dipping to a low of 102.90.

Meanwhile, a hawkish tilt by the Bank of Japan (BoJ) has increased the odds for Governor Kazuo Ueda and Co. to end the negative interest rates cycle. Analysts at Société Générale said, “The yen snapped back from a challenging January after the hawkish read of the BoJ Summary of Opinions at the January meeting. Our base case is for a rate increase and an end to YCC in March. Demand picked up for 3-month downside strikes in USD/JPY.”

Looking forward in the schedule, the US economic calendar is set to include the release of the University of Michigan Consumer Sentiment as well as Factory Orders.

USD/JPY Technical Levels

USD/JPY

Overview
Today last price	147.9
Today Daily Change	1.57
Today Daily Change %	1.07
Today daily open	146.33

Trends
Daily SMA20	146.78
Daily SMA50	145.36
Daily SMA100	147.48
Daily SMA200	144.59

Levels
Previous Daily High	147.22
Previous Daily Low	145.9
Previous Weekly High	148.7
Previous Weekly Low	146.65
Previous Monthly High	148.81
Previous Monthly Low	140.81
Daily Fibonacci 38.2%	146.4
Daily Fibonacci 61.8%	146.72
Daily Pivot Point S1	145.74
Daily Pivot Point S2	145.16
Daily Pivot Point S3	144.42
Daily Pivot Point R1	147.07
Daily Pivot Point R2	147.81
Daily Pivot Point R3	148.39

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.