Later in today’s US session, the US Jobs Report will further influence sentiment toward the Fed’s rate path. Economists forecast average hourly earnings to rise 3.9% year-on-year in April, up from 3.8% in March, while expecting the unemployment rate to remain at 4.2%. Nonfarm payrolls are predicted to increase by 130k after a 228k jump in March.
Rising wages, falling unemployment, and higher nonfarm payrolls may temper Fed rate cut bets, boosting US dollar demand. A less dovish Fed stance may drive the USD/JPY pair toward 147, bringing the 149.358 resistance level into view. Conversely, weaker wage growth and rising unemployment may signal softer spending and inflation, raising Fed rate cut expectations. A more dovish Fed rate path could send the pair toward the 140.309 support level.
