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USD/JPY still struggling for traction

As you all know, the combination of BOJ comments and higher Japanese wage data yesterday sent the USD/JPY tumbling lower. That move was assisted by further falls in US yields and a dovish tone from the Fed boss. The USD/JPY dropped to 147.60, but it did later rebound to 148.30 into the 4pm London fix, mainly due to a rebound in the EUR/JPY at the same time. That rebound was delivered by comments from the ECB boss, Christine Lagarde. The USD/JPY later closed in the US at 148.05, but it did fall to a fresh interim low earlier today, at 147.53. However, it has rebounded above 148 again since. That said, it is still struggling to gain any lasting traction and of course the outcome of the US monthly jobs report is going decide if it can or not. At the same time, it looks likely, that a significant rise in US yields is going to be required to counter the outlook for a likely shift now in Japanese monetary policy on March 19. So, it remains to be seen if the US jobs report can deliver that this afternoon. The USD/JPY is currently trading at 147.90 
 

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