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8 Jan 2015
USD/JPY range bound and awaits ECB decision and US data
FXStreet (Guatemala) - USD/JPY is making anther attempt on the bid where previously, supply at 119.75/80 caps the bulls efforts from the mid point of the 119 handle.
We may find some further support in tomorrow's Nonfarm Payrolls data. If we have the affirmation that the US labour market was continuing to strengthen into year end, this will support the US dollar and weaken the Yen and could return the pair into the 120's.
However, FX Strategists at the Bank of Tokyo Mitsubishi UFJ noted and said "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". The analysts further added, that 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."
We may find some further support in tomorrow's Nonfarm Payrolls data. If we have the affirmation that the US labour market was continuing to strengthen into year end, this will support the US dollar and weaken the Yen and could return the pair into the 120's.
However, FX Strategists at the Bank of Tokyo Mitsubishi UFJ noted and said "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". The analysts further added, that 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."