The USD/JPY pair fell off of the cliff on Thursday as the US dollar got beat up. Ironically, we did see a little bit of a bounce towards the end of the day and with the fact that nonfarm payroll comes out later today I suspect that this market will be very volatile. If we get a decent jobs number, this market will shoot straight back up and they will retake all of the losses. However, this is based upon what the Federal Reserve may or may not do. It isn’t necessarily based upon reality. Also, if we do get a selloff in this pair, I have to believe that the Bank of Japan get involved somewhere closer the 95 handle.
Written by FX Empire