Home Fundamental Comment USDJPY rises after BOJ minutes, focus turns to U.S. nonfarm payrolls
USDJPY rises after BOJ minutes, focus turns to U.S. nonfarm payrolls

USDJPY rises after BOJ minutes, focus turns to U.S. nonfarm payrolls

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usd1The USDJPY rose for a second straight session on Friday as some BOJ members warned that consumption remained weak, where investors will shift their attention to the awaited U.S. nonfarm payrolls.

The yen retreated as some members warned that slow private consumption could weigh on economic recovery.

“Some members expressed the view that improvements in indicators of private consumption had lagged somewhat behind the improvement in employment and income situation,” the minutes said.

On the upside, the board members agreed that recovery remains on track and inflation will rise in the coming year, following several years of deflation.

Later in the day, eyes will focus on the nonfarm payrolls data, which is considered the key indicator for the health of the labor market.

American employers added 228,000 jobs in April from 126,000 in March, according to median forecasts.

The dollar strengthened against the yen on Thursday after a report showing U.S. initial jobless claims hovered near 15-year low.

Meanwhile, the USDJPY is trading in critical areas after it hit a peak of 120.08, as it may face pressure form the resistance line of the downside channel.

A better than forecast nonfarm figures may help the pair to break the channel to the upside.

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Ahmed Mamdouh Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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