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USD/JPY continues to hold strong support above the 156.40 zone and has successfully broken out of a bullish flag pattern on the 4-hour chart near 157.35. In contrast, major counterparts like EUR/USD experienced sharp declines, trading below the key 1.1300 psychological support level. The broader US Dollar remains well-supported as traders position ahead of crucial macroeconomic data releases.
The upcoming US Non-Farm Payrolls (NFP) report is set to act as the primary catalyst for the next directional move in the currency markets. Expectations surrounding labor market strength will significantly influence Federal Reserve interest rate expectations, directly impacting yields and foreign exchange flows.
Moving forward, market participants should watch if USD/JPY can maintain its bullish breakout momentum above 157.35. A stronger-than-expected NFP report could fuel further upside toward key resistance barriers, while a downside surprise in job growth may trigger a sharp corrective pullback across major US Dollar pairs.
