USD/JPY pausing in Europe
JPY paused in Europe after further good gains in Asia. Apprehension in global equity markets is driving the latest leg of JPY gains, alongside further narrowing in U.S.-Japan bond yield spreads. Going into payrolls the sense is that the numbers would have to be stronger than expected and prompt a rise in U.S. Treasury yields, otherwise the market will test the downside on USD/JPY at 142.00 and 141.69. Multi month traders see 135 and potentially 130.
