The dollar moved on a firmer note around ¥111.60 in Tokyo trading Friday, amid a strong wait-and-see mood before the release of U.S. jobs data.
At 5 p.m., the dollar stood at ¥111.56, up from ¥111.27 at the same time Thursday. The euro was at $1.1824, down from $1.1847, and at ¥131.93, up from ¥131.83.
After moving around ¥111.50 by carrying over its strength from overseas trading, the dollar scaled past ¥111.60 toward midmorning on buying by Japanese importers for settlement purposes.
But the greenback’s approach to a psychological resistance line around ¥111.70 prompted selling by players who found the rise too fast, traders said.
Trading was largely lackluster in the afternoon, with investors taking to the sidelines to wait for the U.S. Labor Department’s employment report for June, due out later in the day.
According to a consensus estimate by analysts, the report would show a nonfarm payroll increase of 700,000.
“But unless the actual figure far surpasses the estimate, the dollar-yen pair may not react much,” a think tank official said.
“Strong jobs growth has been factored in,” a securities house official noted.
Meanwhile, a currency broker warned of “a negative surprise” at a time when participants are forecasting bullish numbers.
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