By: DailyForex.com
During the Asian session, the Japanese Yen edged closer to a 4-month low, attributed primarily to an importer-driven selloff and a reconsideration of the recent Bank of Japan’s easing efforts. Trading is expected to be subdued for the majority of currency pairs today as markets turn toward the U.S. and tomorrow’s non-farms payroll report. The consensus of analysts recently polled are forecasting a rise in job growth to 125,000 in October, with the unemployment rate likely ticking up from the current 7.8%.
As reported at 1:18 p.m. (JST) in Tokyo, the USD/JPY pair was trading at 79.99 Japanese Yen, a gain of 0.3% and a full retracement of the gains which were given up following Tuesday’s BoJ announcement of easing measures which initially got an unenthusiastic reception from the markets. More recently, the pair was trading at 80.0770 and inching toward the 4-month peak struck last Friday. One analyst said that in retrospection, the Japanese central bank’s decision could provide U.S. Dollar support as it is, on the face of it, a quite aggressive move toward putting an end to a deflationary cycle.
Next week’s U.S. Presidential election could also give some support to the greenback as a potential victory by the Republican challenger could provide a rise in U.S. bond yields which would in turn lift the USD/JPY pair which tends to track the U.S. bond yields.