The USD/JPY pair shot straight up during the session on Friday in response to the slightly better than anticipated jobs number out of the United States. This has the market looking for the Federal Reserve to taper off of quantitative easing sometime in the next several months, and that of course is good for the US dollar. On the other side of the Pacific, we have the Bank of Japan, which is looking to weaken the value of the Japanese yen over the longer term. With the monetary policy in Tokyo being much looser and just starting, we feel that the US dollar will continue to appreciate over the longer term as well.
Written by FX Empire