7 Feb 2014
USD/JPY standstill ahead of nonfarm payrolls
FXStreet (Córdoba) - The USD/JPY continues to consolidate in a narrow range near weekly highs as the market remains standstill ahead of the US nonfarm payrolls report.
Market attention turns to the US employment report at 13:30GMT with most analysts calling for 140,000-185,000 new jobs in January, following December's awful 74,000 gain. Having bounced from a low of 101.93, the USD/JPY is spending time around 102.15, where it is virtually unchanged on the day.
USD/JPY outlook
"If risk appetite steadies and if the US data are positive, USD/JPY should rally—spreads will move back in the USD's favour after the recent narrowing", said the TD Securities team.
"Considering how interlinked developments in the Japanese stock market and the JPY have been over the past year, either USD/JPY gains are due to pull the Japanese index up out of 'correction' mode and back above the 200-day MA or the slide in the Nikkei will drag USD/JPY back lower", TDS added. "A somewhat stronger USD today might translate into a rebound in Japanese stocks in the days ahead".
Market attention turns to the US employment report at 13:30GMT with most analysts calling for 140,000-185,000 new jobs in January, following December's awful 74,000 gain. Having bounced from a low of 101.93, the USD/JPY is spending time around 102.15, where it is virtually unchanged on the day.
USD/JPY outlook
"If risk appetite steadies and if the US data are positive, USD/JPY should rally—spreads will move back in the USD's favour after the recent narrowing", said the TD Securities team.
"Considering how interlinked developments in the Japanese stock market and the JPY have been over the past year, either USD/JPY gains are due to pull the Japanese index up out of 'correction' mode and back above the 200-day MA or the slide in the Nikkei will drag USD/JPY back lower", TDS added. "A somewhat stronger USD today might translate into a rebound in Japanese stocks in the days ahead".