USDJPY climbs: what should traders expect from the US jobs report?

The USDJPY pair continues to strengthen ahead of the key US jobs report release, currently trading at 143.93. Discover more in our analysis for 6 June 2025.

USDJPY forecast: key trading points

• Investors adopt a wait-and-see approach ahead of the US Nonfarm Payrolls release
• Speculation of BoJ policy tightening grows but remains insufficient to lift the yen
• USDJPY forecast for 6 June 2025: 145.35

Fundamental analysis

The USDJPY rate is rising for the second consecutive session, staying within a sideways range between 142.50 and 144.20. The chart continues to indicate the potential formation of a Double Bottom reversal pattern, which could signal further strengthening of the US dollar.

The Japanese yen remains under pressure as investors wait for the crucial US employment report. Additional support for the US dollar came from news of a phone call between Donald Trump and Xi Jinping, in which both leaders agreed to continue trade negotiations.

Meanwhile, BoJ Governor Kazuo Ueda reiterated the central bank’s readiness to raise interest rates if economic and inflation targets are met. Although this has raised expectations of a cautious but steady policy tightening, it remains insufficient to boost the yen, according to today’s USDJPY forecast.

USDJPY technical analysis

The USDJPY rate has consolidated above the Moving Averages, indicating persistent upward momentum. The second consecutive day of gains boosts expectations of a breakout above the 144.20 resistance level. The USDJPY forecast for today suggests the price could test the 143.65 support level before rebounding towards 145.35.

The Stochastic Oscillator also supports a possible short-term correction before continued growth. While the indicator remains in overbought territory, it maintains an upward trajectory supported by the trendline.

Consolidation above the crucial resistance level at 144.20 would confirm further growth, signalling a breakout above the upper boundary of the Double Bottom reversal pattern.

Summary

The fundamental backdrop for the USDJPY pair points to persistent pressure on the yen. A strong US jobs report could push the pair above the upper boundary of its current range. USDJPY technical analysis confirms the formation of a Double Bottom reversal pattern, and a breakout above 144.20 may open the way for a move to the 145.35 target.