USD/JYP finds support at 200-H MA
The USD/JPY pair is trading at ¥104.89. Overnight the Bank of Japan maintained its monetary policy rather than expanding it as some traders had anticipated. The pull back in the US dollar hasn’t been too big given the high hope dealers had for an additional stimulus.
The suggestion that the Japanese economy needs extra monetary easing will not go away after the country posted a negative growth of 1.7% in the second-quarter. As Ryan Huang stated, the dollar recently hit an eight-month high versus the yen but traders are now focused on the US jobs report tomorrow. Analysts are expecting an increase of 230,000 jobs on the payroll.
The 200-hour moving average of ¥104.26 is providing support. A bullish jobs report could put the US dollar on a path to ¥106.00.