Yen Gains as FX Market Focuses on Upcoming US Employment Data

The Japanese yen rallied today as the Forex market is preparing for the release of US employment data. The currency gained even though economic data from Japan itself was not particularly good.
Traders anxiously anticipate the upcoming release of non-farm payrolls scheduled for 12:30 GMT today. A positive report would increase chances for an early interest rate hike, likely increasing risk aversion on the market. This allowed the yen, which is considered to be a relatively safe currency, to gain even as Japan’s wage growth in July was far below expectations (0.6 percent versus the predicted 2.1 percent).
USD/JPY fell from 120.06 to 119.01 and EUR/JPY slid from 133.55 to 132.59 (the lowest since April 30) as of 10:20 GMT today.

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