USD/JPY trims recent losses, nearing 154.00 with US data on tap

USD/JPY trims losses, nears 154.00 with US data ahead

The US Dollar regained part of its recent losses against the Japanese Yen on Wednesday's European session, trading close to the 154.00 level after dropping just below 152.00 on Tuesday. Despite the rebound, sentiment remains cautious in a market dominated by risk aversion, as investors await key US employment and services activity data scheduled for later today.

Market mood and central bank stance

The minutes from the Bank of Japan’s October monetary policy meeting reflected a cautious tone. Several board members expressed concern about raising interest rates further, citing potential economic risks linked to US tariffs. This dovish signal has added mild pressure on the Yen.

Yen intervention concerns

Japan’s chief foreign exchange diplomat, Atsushi Mimura, stated that the recent movements of the Yen are detached from economic fundamentals.

He warned that current exchange rate levels are approaching the triggers for past BoJ interventions in 2022 and 2024.

Risk aversion drives sentiment

Persistent risk aversion continues to shape market behavior as traders scale back expectations of another Federal Reserve rate cut in December. Meanwhile, the ongoing US government shutdown has entered its fifth week, putting it on course to become the longest in the nation’s history.

Focus on upcoming US data

The US Dollar Index remains steady near a three-month high. Investors are waiting for October’s ADP Employment Report for hints about the Fed’s next rate decision. Markets expect private sector employment to rise by about 25,000 following a 32,000 drop in September, still far below the monthly average of 150,000 jobs recorded from 2010 to 2025.

Author’s Summary

The US Dollar stabilizes near 154.00 as markets eye key employment data while caution over monetary policy and economic risks weighs on sentiment.

FXStreet — 2025-11-06