The Japanese Yen remains supported near its August monthly swing low during the Asian session on Friday, trading around the 155.75 region with little change for the day. Spot prices continue to hover near multi-week lows, with heavy weekly losses looming as market participants eagerly await the highly anticipated US monthly employment details.
Technical Outlook and USD Weakness
Against the backdrop of a failed attempt earlier in the week to conquer the 200-period Simple Moving Average on the 4-hour chart, any weakness below the August swing low near 155.25 to 155.20 is expected to act as a fresh trigger for bearish traders. Should this support break, the currency pair could weaken further beneath the 155.00 psychological threshold and extend its recent sharp corrective pullback from a four-decade peak. Conversely, an upward recovery requiring sustained movement above the 200-period SMA and the 160.00 psychological barrier would be necessary to alleviate the prevailing downside pressure.
Broader Market Movements and Commodities
Other major currency pairs and commodities are also reacting to shifting macroeconomic expectations. The AUD/USD pair holds steady above 0.7200, near its highest level since mid-May, as bulls wait for employment cues before placing fresh bets. Meanwhile, gold consolidates its strong gains recorded over the past two sessions, trading below $4,500 during the Asian session while awaiting policy signals from the US central bank. In the energy sector, while the broader oil market appears calmer, diesel is signaling diverging trends, with the US diesel crack spread surging above $100 per barrel for the first time to reach an intraday record just over $102.00.
