USD/JPY Awaits NFP Data as Fed Rate Cut Expectations Drive Trading

USD/JPY consolidates near 149.50 as markets await Friday's US Non-Farm Payrolls report, which could determine the pair's next directional breakout. The dollar has shown mixed performance as traders reassess Federal Reserve rate cut expectations following recent economic data. Market pricing currently reflects a 65% probability of a 25 basis point cut at the November FOMC meeting, down from 80% last week. Technical indicators suggest the pair is coiling within a narrowing range between 148.80 support and 150.20 resistance. The upcoming employment data will be crucial, with consensus expecting 140,000 new jobs and unemployment steady at 4.2%. A stronger-than-expected report could push USD/JPY toward the 151.00 handle, while disappointing figures might trigger a test of the 148.00 psychological support. Japanese officials continue monitoring yen weakness, adding another layer of complexity to the pair's dynamics.