A couple of items from Friday to take note of for USD/JPY traders.
1. Expectations of Federal Open Market Committee (FOMC) rate cuts have been pared back due to the solid jobs report as well as the Wall Street Journal Fed 'insider' report:
- Forexlive Americas FX news wrap: A surprise fall in the US unemployment rate lifts dollar
- Timiraos: Fed unlikley to talk about rate cuts and perhaps may not for several months
2. Expectations of a tightening in policy from the Bank of Japan have also been watered down, Justing posted on a report discussing 3 reasons that expecting an imminent pivot from the BOJ is misplaced:
Add those two together and you have a recipe to underpin USD/JPY in the session and sessions ahead.
