USD/JPY traders on high alert as the final 2023 US monthly jobs report looms

Later today the US will release their November monthly jobs report. That is due out at 1.30pm GMT and it could be important. It really depends on what that data reveals. The markets are not expecting any real surprises here, but that does not preclude the possibility of course. The consensus is for non-farm payrolls to have risen by 180k, against a rise of 150k seen in October. The unemployment rate is forecast to remain unchanged, at 3.9%. The average wages component is important too and that is expected to have slipped slightly, from 4.1% to 4% on an annualised basis. So, given the recent surge in the Yen and its implied volatility, a surprise in this data from the US later today will see this pair most likely react in an even violent way than would normally be the case. As you can see again so far this morning, liquidity is poor and volatility remains highly elevated. The calendar is not helping that either. The dollar here really needs a strong set of payroll data, if it is to counter this surge in the Yen and shift in outlook for Japanese monetary policy