The US Dollar traded slightly weaker on Friday ahead of the release of the US Nonfarm Payrolls data for September, scheduled for 12:30 GMT, according to FX Street. The US Dollar Index hovered around 102.20 as investors awaited the key employment report that could influence Federal Reserve policy.
Meanwhile, the Japanese Yen gained momentum following stronger-than-expected inflation figures from Tokyo’s Consumer Price Index, prompting USD/JPY to retreat after two days of gains. FX Street reported that USD/JPY traded near 157.90 during Asian hours as the Yen's recent strength pressured the pair lower.
This movement highlights the sensitivity of the USD/JPY pair to domestic inflation data in Japan and upcoming US economic indicators, factors that remain crucial for Japanese investors monitoring currency volatility amid ongoing Federal Reserve decisions.