• The USD/JPY pair continues its losing streak for the fourth trading session and falls below 150.00 ahead of the US NFP.
• The US NFP report is expected to show a slowdown in labor demand, a decline in wage growth and a stable unemployment rate.
• The BoJ’s hawkish monetary policy contributed to the strengthening of the Japanese yen.

The USD/JPY pair is trading in Thursday’s trading range below the psychological mark of 150.00 in Friday’s behind schedule Asian session. The asset remains on the defensive as expected dovish guidance from the Federal Reserve (Fed) on interest rates has weakened the attractiveness of the US dollar. Moreover, the Japanese yen’s immense strength due to aggressive-than-expected tightening by the Bank of Japan weighed on the major.

Market sentiment remains risk-off ahead of the release of the United States (US) nonfarm payrolls (NFP) data for July, which will be released at 12:30 GMT. S&P 500 futures posted significant losses during trading hours in Asia.

Economists estimate that 175,000 fresh workers were hired in July, down from 206,000 previously. The unemployment rate is expected to remain steady at 4.1%.

Investors will be watching closely for average hourly earnings data, a key indicator of wage growth that drives consumer spending and ultimately feeds into price pressures. The wage growth rate is estimated to have slowed to a year-on-year rate of 3.9% from the previous reading of 3.7%, with the monthly figure rising steadily at 0.3%.

Meanwhile, the U.S. Dollar Index (DXY), which tracks the value of the American currency against six major currencies, fell to 104.23.

The Japanese yen, however, is doing well as the BoJ raised interest rates by 25 basis points (bps) from an estimated 10 bps. In addition, the BoJ pledged to halve its bond-buying operations by early 2026. BoJ Governor Kazuo Ueda did not close the door to further rate hikes this year and remained confident of further price pressures and improving economic conditions.