USD/JPY to inch higher towards 117.00 on strong wage inflation data – MUFG

Friday’s jobs data will be important. And the markets are likely braced for a strong report. An upside surprise on wage inflation numbers could lift the USD/JPY pair to the 117.00 level, economists at MUFG Bank report.

The decider is likely to be the wage data

“We will be looking closely at the wage today and upside surprises there coupled with a strong NFP print would ensure the upward momentum for yields likely continues.”

“USD/JPY has struggled in circumstances of equity market underperformance but we still see scope for further upside to test and probably breach the long-term trendline resistance (1990 & 2015 highs) at around the 117.00 level.”