Yen in cautious decline ahead of US payrolls data

Yen fell in Asian trade on Friday against a basket of major rivals, under pressure from the higher US 10-year treasury yields, as investors await the crucial US monthly payrolls report later today. 

Yen is on track for the largest weekly profit since late April amid increased speculation about the Bank of Japan’s policy meeting next week, and its potential decisions on government bond purchases. 

The Price 

The USD/JPY rose 0.2% today to 155.93 yen, with a session-low at 155.53.

The pair rose 0.3% yesterday, resuming gains and approaching three-week highs at 154.52 yen per dollar.

US Yields 

US 10-year treasury yields rose 0.35% today for the second straight session off two-month lows at 4.275%, underpinning the greenback.

The developments came ahead of the US May payrolls report, crucial for gauging the health of the economy. 

The data will likely provide important clues on the path ahead for the Federal Reserve’s monetary policies.

Weekly Trades

The yen is up 0.8% so far this week against the dollar on track for the largest weekly profit since late April. 

The BOJ

The Bank of Japan is convening next week to discuss appropriate monetary policies for the world’s third largest economy. 

Bloomberg reported that the BOJ will likely consider cutting down its bonds purchases program at its next meeting. 

BOJ Deputy Governor, Ruizo Himino recently said the BOJ must keep a vigilant eye on the impact of the currency’s weakness on the economy and inflation.