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USDJPY Extending Move Lower, Eyes BOJ Day Lows

  • USDJPY remains under pressure on Thursday, extending the pullback from Tuesday’s high of 137.77 high to over 400 pips. Price has breached initial support at the 20-day EMA which intersected at 134.43 and has now crossed the 50-day EMA which lies at 133.84.
  • Price action may now focus on last Friday’s, BOJ day, lows at 133.38. A clear breach of this support zone would undermine the recent bullish theme and signal scope for a deeper pullback.
  • With the key driver remaining the downward pressure on front-end US yields and the accumulation of Fed rate cut pricing later this year, emphasis will be on the latest US jobs data before the weekend close.
  • Bloomberg consensus looks for further moderation in payrolls growth in April with the +182k estimate its softest since Dec’20, with less clear-cut potential impacts from weather and seasonal adjustment this month.

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