Zerologic
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USDJPY extends gains despite dovish BOJ sentiment
In USDJPY trading last week, the price extended its increase after previously crossing the MA 50 from the downside. USDJPY crossed the MA 50 at 145,630 and is now in the range of 148,918 on the FXOpen platform trying to approach the MA 200 at 151,000.
US Non-Farm Employment Change data released at the end of last week seems to be weighing on the JPY. NFP showed an actual value of 254k higher than the forecast of 147k from the previous data revision of 159k. Meanwhile, the Unemployment rate fell to 4.1% from the forecast of 4.2% and the previous data revision of 4.2%.
Meanwhile, BOJ board member Asahi Noguchi said that the central bank "must patiently maintain loose monetary conditions." This indicates that the BOJ is likely to make gradual adjustments to the level of monetary support while carefully assessing whether inflation sustainably reaches its 2% target, supported by wage growth. The BOJ also indicated there are no immediate plans for additional interest rate hikes but remains open to adjustments if economic conditions show improvement.
Today there is no high-impact economic schedule for USDJPY, there is only a leading indicator that measures the level of the composite index based on 11 economic indicators related to employment, production, new orders, consumer confidence, housing, stock prices, money supply, and interest rate spreads.