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Why Friday could be an important day for the USD/JPY

On Friday the European markets will be closed for the Good Friday Easter holiday. As already noted, the US markets will be open and we have some very important US data due out that afternoon too. That is the latest PCE report and it could have a significant impact on the dollar right ahead of the Easter weekend. So, with the European markets absent, the risks for the dollar look balanced and dependent upon what that PCE data might reveal and how it impacts US bond markets too. Also, and importantly, if ever the Bank of Japan wanted to stem the rise in the USD/JPY, then Friday during the early European time zone might be a perfect time for them to do so, with the European markets closed and US not yet then open. Of course that is just hypotheses and not even conjecture, but just something to be mindful of. Trading conditions on Friday will be thin anyway and volatility could rise, with or without any BOJ involvement. From a positive perspective that could throw up some opportunity too, but all depends on the data and any developments that may, or may not evolve. The USD/JPY is just now trading at 151.30 

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