USD/JPY Fundamental Forecast – May 9, 2016

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Updated: Sep 1, 2019, 14:00 UTC

The USD/JPY dipped 12 points to trade at 107.14 as the greenback gained overnight. The dollar held gains against the yen early on Friday ahead of the

USD/JPY Fundamental Forecast – May 9, 2016

The USD/JPY dipped 12 points to trade at 107.14 as the greenback gained overnight. The dollar held gains against the yen early on Friday ahead of the April U.S. non-farm payrolls due later in the day that could support the greenback.

The dollar stood steady at 107.24 yen, having gained for three straight days to pull away from an 18-month low of 105.55 plumbed on Tuesday. The yen, which jumped after the Bank of Japan opted to stand pat on monetary policy last week, had some of its gains trimmed after Japanese officials said they could act if needed to halt its rise. Investors, however, remain skeptical whether an intervention by Japan would have any lasting effect.

The dollar is poised for its first weekly gain against all 16 major peers since the middle of March before a U.S. jobs report on Friday that may indicate whether the economy is strong enough for higher borrowing costs.

A Bloomberg gauge of the dollar is also headed for its biggest weekly advance in six months after Federal Reserve officials suggested an interest-increase could be on the table at the June meeting. St. Louis Fed chief James Bullard, San Francisco’s John Williams, Robert Kaplan of Dallas and Atlanta’s Dennis Lockhart all stressed in separate remarks Thursday that policy would be data dependent.

FxEmpire provides in-depth analysis for each asset we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.