If government bonds stay on the defensive after today’s five-year low in US weekly jobless claims (as the good jobs data is raising the odds again of the market picking back up the theme of the FOMC taking the easing pedal off the metal), we may be looking at a probe above that “magic” 100 level in USDJPY after coiling in a shrinking range for weeks. This needs to happen tomorrow or very soon after today’s rally – a pause of more than a session or a day and the uncertainty rises again, at which point the ascending line of consolidation to the downside could become the focus.
The US dollar has swept sharply stronger across the board today in an impressive performance.
SAXO BANK