According to Jinshi Data, foreign exchange strategists believe that the yen is likely to test its August high against the dollar later on Friday if the employment data boosts bets on a sharp interest rate cut by the Federal Reserve this month.
Gareth Berry, strategist at Macquarie Group, said the yen "will move in response" if there are any surprises in the data, and the dollar-yen exchange rate would "be in trouble" if the unemployment rate rises to 4.4%.
Strategists at JPMorgan Chase & Co. and Mizuho Securities also saw the data as a potential catalyst for the yen to extend its gains. The yen is on track for a fourth straight day of gains and only needs to rise about 1% to break above the 141.70 level set on Aug. 5 during the turmoil that gripped global markets.