by In the European trading session on Monday, the US dollar gained momentum against the Japanese yen.
USD/JPY Gains Strength
After a while, the USD managed to outperform JPY. It has successfully demonstrated its strength against the yen gaining more momentum.
In the past week, the overall performance of the dollar was weaker against the Japanese yen. However, as the non-farm payroll data came out for the United States, things became very supportive of the USD.
This is when the USD started gaining momentum against the Japanese yen. It was the Friday trading session when the trading value of the USD started to gain momentum.
Over time, the USD has gotten stronger and the same trend has continued in the Monday trading session.
Due to the strong NFP results, the expectations for the upcoming months have been raised significantly. The Federal Reserve has even grown more aggressive towards fighting inflation as it has been tightening the monetary benchmarks.
Dollar Index Performance
The US Dollar Index shows that the USD has lost 0.1% in trading value against the six fiat currencies in the basket. Following the dip, the USD is now trading at 106.435.
On Friday, the USD had traded at its peak against the six fiat currencies since July 28. On Friday, the USD had reportedly traded at 106.93.
USD/JPY Value Growth
The data shows that the value of the USD/JPY pair has risen by 0.2% on Monday. The report shows that the trading value of the pair has climbed to 135.40. On Friday, the trading value of the pair was 135.58.
The 135.58 mark was the highest level that was recorded for the pair since July 28.
Nonfarm Payrolls Data for July
Among all the factors that could positively impact the value of the pair, it was the US jobs report for the month of July that did its magic.
The July US jobs report is being considered the red-hot factor that has helped push the trading value of the pair on Friday. Till now, the effect of the jobs data is lingering, which is pushing the value of the pair.
US Labor Market is Strong
The recent report surrounding jobs has made it clear that despite the hike in interest and inflation rates, the labor market has continued pressing onwards.
The exponential rise in employment has provided a cushion to the Feds so they can increase the interest rates to fight off inflation. It is expected that the same trend may continue for the month of September.
Apart from the Japanese yen, the USD has also gained some ground versus the GBP, as it has gained 0.1% strength to come up to 1.2080.
