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JPY Off Week's Best Levels as BoJ-Inspired Moves Seen Overextended

FOREX
  • Following yesterday's sharp rally, the JPY remains in focus as USD/JPY holds below the Y145.00 handle having printed a new pullback low at 141.71 in late US hours. The market moves increase the focus on the 200-dma, crossing at 142.34, which has acted as a magnet for prices.
  • Recovery from lows has also been aided by a Reuters article citing sources in reporting that the comments from Ueda earlier this week were over-interpreted by markets - helping keep JPY from being the strongest performer in G10 for a second session.
  • Downtrodden commodity-tied currencies have bounced modestly early Friday, with AUD and CAD among the strongest performers this morning as oil prices rebound very slightly off the Thursday pullback low.
  • Focus turns to the November US nonfarm payrolls release, for which markets expect the US to have added 183k jobs over the month, keeping the unemployment rate unchanged at 3.9%. Average hourly earnings are seen slowing to 4.0% from 4.1% previously. UMich sentiment survey follows to round off the week.

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