The USD/JPY pair went wild during the session on Thursday after the ECB announced that it was cutting rates. This of course threw the markets into complete disarray as it was complete surprise, and now putting more emphasis on the nonfarm payroll numbers coming out later today. We did not close above the 99 handle, so we did not get our buy signal, and quite frankly would be very risky to take that trade before the nonfarm numbers come out anyway. That being said, we do think there is more of an upside bias to this pair, but you do have to wonder about global growth in general now. That could put a little bit of a “risk off” attitude into the markets which is negative for this pair. At the end though, we do believe that eventually the Dollar will triumph over the Yen.
Written by FX Empire