USD/JPY: Upside appears capped near 107.50 - SocGen

Kyosuke Suzuki, Director and Head of FX sales at Societe Generale in Tokyo, offers his outlook on the USD/JPY ahead of the US NFP release.

Key Quotes:

USD/JPY may not get much upside if US payrolls data are within forecast.

Focus will shift to next week's Summit of the Americas to see if it sheds some light on future US trade stance.

Doesn't expect positive surprises from today's jobs report or next week's CPI figure.

That means it would only be supportive to keep USD/JPY around 107 levels.

Next key point is Abe-Trump summit to see if Trump demands something from Abe.

Even if US-Japan trade tension rises, it's not something that can be resolved immediately.

Downside to USD/JPY seen at 105 if that's the case.