The U.S. employment statistics beat expectations, but the dollar/yen remains soft as U.S. 10-year Treasury yields fall.

【5/8Market Overview

In Tokyo time, USD/JPY rose toward the fixing level on strong demand for dollars,156.98reaching around 156.98 yen. However, due to expectations of dollar-buying ahead of the fix and vigilance over intervention, there was no follow-through buying, and it subsequently156traded in the upper-156 yen range with limited gains. In European session, USD/JPY remained range-bound around156.80yen amid uncertainties over peace talks between the U.S. and Iran, as well as caution ahead of the U.S. employment report and possible forex intervention.NYtime, reports that the U.S. and Iran clashed near the Strait of Hormuz led to expectations that negotiations toward ending the fighting would continue, causing crude oil futures to fall and broad USD selling to lead. 4In the May U.S. employment dataNFP (Non-Farm Payrolls) rose by11.5million, exceeding the forecast of6.2million, and the unemployment rate was4.3%, as expected. However, with U.S. 10-year Treasury yields falling, USD/JPY dropped to156.43yen.

【5/11Market View