USD/JPY: a battle between BoJ and Nonfarm Payroll's - BTMU

FXStreet (Guatemala) - Lee Hardman, currency analyst at the Bank of Tokyo Mitsubishi UFJ explained that, next week, lingering market expectation for the Fed’s next policy move may stay to encourage the US dollar strengthening.

Key Quotes:

"The non-farm payroll report may support USD/JPY's rise near the recent high at 125.86 from the 5th June. Yet, Japanese policy makers may try to limit further USD/JPY upside beyond."

"The stronger US dollar and higher US treasury yields may weaken the US equity market. The US equity market may also soften on emerging market weakness. The fragile global market momentum before the Fed’s policy move may dampen support for the US dollar. The BoJ will likely leave monetary policy settings intact at their latest policy meeting. Governor Kuroda is unlikely to give any strong intention at this stage in mid-summer."

EUR/JPY sideways, far from weekly lows

The euro is up modestly against the yen on Thursday but remains moving sideways after rising sharply yesterday. The pair is approaching daily highs as it trades above 136.00.
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