From the FXWW Chatroom – USDJPY remains in consolidation mode with demand into the dips and offers present as 120.00 continues to draw attention with only light trade seen over the last 24 hours.
Positioning has been tighter with attention moving to the US again this afternoon with the release of the month with Payrolls. Median expectations are around 180k and with the USD back on a front foot. Anything less would disappoint and we could reverse once again and participants would leave after what’s been a long week with further disappointment.
I favour the long USD trade going forward and I think any pullbacks should be seen as buy opportunities. Some noise yesterday around the BoJ where headlines suggested the central bank would not act in the near term. This rocked the boat and USDJPY fell back towards support. But surprisingly the downside move was short lived and demand prevailed giving the pair a boost once again.
From here stand aside until more clarity this afternoon and let’s see if we can sustain the topside momentum and get a strong weekly close for the USD which would set us up for next week with the BoJ two day meeting starting Tuesday.
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