USD/JPY resumed growth?
USD/JPY recovered from this week’s low of 100.75 to 102.15 ahead of the US NFP at 13:30 GMT (forecast: 185K; prior: 74K). Is the bearish correction over?
Strategists at RBS are optimistic on USD/JPY and the global risk appetite ahead of the US payrolls report. “A strong number is probably better for emerging markets and US equities on the basis that if the Fed is likely to plough ahead with its taper better it do so with the background of a resilient US economy."
Analysts at Bank of Tokyo-Mitsubishi UFJ agree: “We see a good chance markets will recover from the disappointment caused by the December jobs data, which could be revised upward. USD/JPY is more likely to be bought if the jobs figures turn out to be good.”
Analysts are not unanimous in their optimism, though.
Credit Suisse maintains a short USD/JPY position from 101.77 for 100.20. In their view, a rise above 103.45/60 is required to negate the bearish view.
Morgan Stanley holds a short USD/JPY position from 103.00, with a revised stop at 102.50 and a target at 98.00. “We are waiting for the dip to re-buy USD/JPY in a longer term”, they add.
Chart. Daily USD/JPY