USD/JPY looks set to break higher on a solid NFP report – MUFG

Today’s Nonfarm Payrolls data for September will be important as it will be the last report before that FOMC meeting on November 3. With the risks looking skewed to a surprise print being to the upside rather than the downside, there is scope for the dollar to advance further, in the view of economists at MUFG Bank.

See – NFP Preview: Forecasts from 11 major banks for September jobs report, the best hint for Fed’s November taper decision

USD looks good on probable solid jobs report 

“The consensus has crept a little higher this week helped by the stronger than expected ADP report on Wednesday, which saw a 568k gain (expected 430k). The NFP consensus of 500k could still be a little on the low side and the risks appear skewed to the upside.”

“USD/JPY in particular, while we are sceptical of the scale of scope to the upside, looks poised to break the 112.00 level which will spark renewed buying. USD/JPY failed twice at 112.00 in late September but the lack of correction lower since those failures is a positive sign for a fresh break higher today.”

“The EUR/USD low of 1.1529 from Wednesday also looks set to break on a solid NFP report.”