USD/JPY Latest – Japanese Yen Fight Back Thwarted by Rising US Bond Yields

• US ADP data sends US bond yields sharply higher.
• Will the MoF act to prop up the Yen?

The latest FOMC minutes suggest that while further monetary tightening is likely, it will be conducted at a slower pace and be increasingly data-dependent. One area of data that the Fed will be keeping a close eye on is the labor market, and there is a lot of job data out over the next 48 hours, culminating with the latest NFP release on Friday. This will need to be watched closely after the recently released US ADP report showed a huge surge with private businesses creating nearly half-a-million new jobs in June, well above the forecast of 228k and May’s reading of 267K.

USD/JPY DAILY PRICE CHART – JULY 6, 2023

USD/JPY BULLISH

Data provided by

 74% of clients are net short.