USD/JPY: Stable jobs report, lowered expectations of Fed reduce, BOJ pivot, underpinning pair

A few objects from Friday to pay attention to for USD/JPY merchants.

1. Expectations of Federal Open Market Committee (FOMC) price cuts have been pared again as a result of strong jobs report in addition to the Wall Road Journal Fed ‘insider’ report:

• Forexlive Americas FX news wrap: A surprise fall in the US unemployment rate lifts dollar
• Timiraos: Fed unlikley to talk about rate cuts and perhaps may not for several months

2. Expectations of a tightening in coverage from the Financial institution of Japan have additionally been watered down, Justing posted on a report discussing 3 causes that anticipating an imminent pivot from the BOJ is misplaced:

• No intention from Ueda to hint at timing of policy change – report

Add these two collectively and you’ve got a recipe to underpin USD/JPY within the session and classes forward.

This text was written by Eamonn Sheridan at www.forexlive.com.