Why US data matters for USD/JPY & Nikkei this weekUS Dollar vs Japanese YenBLACKBULL:USDJPYBlackBull_MarketsUSD/JPY has climbed above 162 as the gap between US and Japanese interest rates continues to favour the US dollar. The next major news event is US economic data. Upcoming jobs data will shape expectations for Federal Reserve interest rates. Stronger-than-expected data could increase expectations for Fed rate hike, push US yields even higher, supporting further gains in USD/JPY and increasing the chances of intervention from Japanese authorities. The US-Japan 2-year yield gap is now approaching 280 basis points, wider than when Japan last intervened in the currency market. Japanese equities are also benefiting from the weaker yen. The Nikkei remains near record highs as exporters and AI-related stocks continue to perform well, meaning any shift in the US dollar could also influence Japan's stock market.