Events to watch today:
15:30 EET. USD – Change in Non-Farm Payrolls
15:30 EET. USD – Unemployment Rate
USDJPY:

USD/JPY is trading near 159.60 and remains near the upper end of its recent range, though the potential for further gains looks limited. Approaching a round-number level increases the attention of Japanese authorities to market moves and raises the risk of statements aimed at cooling the market, while expensive oil adds strain to an economy that depends on imported commodities.
The US dollar is supported by demand for safe-haven assets amid the Iran-related conflict and by expectations that US interest rates will stay high for longer. At the same time, arguments for a stronger yen are also building: import-driven inflation caused by energy prices increases the likelihood of a tighter policy stance from the Bank of Japan, and sharp exchange-rate moves may be viewed by authorities as speculative.
Today’s US labor market data could become a turning point: weak figures would reduce pressure on yields and make the dollar less attractive. Given the proximity to levels that traditionally trigger a reaction from Japanese officials, it is reasonable to factor in a downside correction in the pair in the near term.
Trading recommendation: SELL 159.60, SL 159.80, TP 158.40
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