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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAmid rising concerns over a cooling US labor market, the USD/JPY pair experienced a notable decline, reaching levels between 160.80 and 160.20. According to reports, the pair shed approximately 50 pips immediately following the release of June non-farm payroll data, which showed an addition of only 57K jobs compared to analyst expectations of 110K. This drop reflects selling pressure on the US Dollar as expectations for economic deceleration grow.
This decline comes at a time of mixed regional economic performance, with Japan's annual retail sales growing by 5.3%, exceeding the 3.2% forecast per market data (released June 28, 2026). Conversely, US data showed additional pressure as the Goods Trade Balance recorded a deficit of -105.8 billion dollars, wider than the expected -85 billion dollars per market data issued on June 26.
Traders should monitor the critical psychological support level at 160.00, as USD/JPY hovered near 160.80 following the data (close of July 3, 2026). Looking at the economic calendar, markets are awaiting the release of the Chinese Manufacturing PMI on June 30, which could impact risk appetite in Asian markets, alongside a speech by ECB President Lagarde that may influence major currency movements.