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8 Jan 2015
USD/JPY may see above 120 levels after Friday’s NFP results – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, anticipates tomorrow’s USD NFP numbers to support USD/JPY buying and take the pair above 120 levels.
Key Quotes
“USD/JPY stayed in a narrow trading range contained on one side by Japanese yen selling, but on the other by a further decline in US yields.”
“December's non-farm payroll report tomorrow may provide affirmation that the strengthening of the US labour market continued into year-end. This will support USD/JPY buying with the pair returning to above the 120-level again post-NFP.”
“However, a strong payrolls report is fully expected and hence is unlikely to dramatically alter current expectations in regard to the timing of federal funds rate increases. This will constrain any excessive USD/JPY rise.”
“Lingering oil price uncertainties may stay longer than expected. Until we get confirmation of the ECB's policy decision, USD/JPY may stay range-bound at present levels.”
Key Quotes
“USD/JPY stayed in a narrow trading range contained on one side by Japanese yen selling, but on the other by a further decline in US yields.”
“December's non-farm payroll report tomorrow may provide affirmation that the strengthening of the US labour market continued into year-end. This will support USD/JPY buying with the pair returning to above the 120-level again post-NFP.”
“However, a strong payrolls report is fully expected and hence is unlikely to dramatically alter current expectations in regard to the timing of federal funds rate increases. This will constrain any excessive USD/JPY rise.”
“Lingering oil price uncertainties may stay longer than expected. Until we get confirmation of the ECB's policy decision, USD/JPY may stay range-bound at present levels.”