The USD/JPY pair rose during the session on Friday after the nonfarm payroll numbers in America came out much stronger than anticipated. This of course means that the Federal Reserve is probably just a little bit closer to tapering off of quantitative easing, while the Bank of Japan is nowhere near tapering off of their monetary easing policies. This should shift the interest rate differential in favor of the Americans even further, and have money flowing from left to right across the Pacific. As long as that’s the case, we think that this pair will continue to go higher although we do recognize the fact that it will probably be a choppy affair.
Written by FX Empire