USD/JPY forecast ahead of the US nonfarm payrolls data

Tokyo core inflation reaches 3.6% in May, highest since Jan 2023; factory output falls [https://invezz.com/wp-content/uploads/2025/05/20250530_063602_o68KJ.png] The USD/JPY exchange rate remained in a consolidation phase last week as traders focused on the upcoming actions by the Bank of Japan (BoJ) and the Federal Reserve. It was trading at 147, where it has remained in the past few days. It has dropped by over 7.5% from the year-to-date high. US NONFARM PAYROLLS DATA The USD/JPY exchange rate was unchanged as traders wait for the upcoming US nonfarm payrolls (NFP) data. Economists expect the data to show that the economy expanded by just 78,000 in August, a slight improvement from the 73,000 it added in the previous month. Based on the recent trends, it is likely that the Bureau of Labor Statistics (BLS) will downgrade the estimate of the July jobs report. In its last report, it downgraded the May and June jobs reports to show that the economy created an average of 35,000 jobs in May and June. The upcoming jobs report is important because it is what the Federal Reserve is…