USD flows: JPY leading the Way

The approach of Friday’s U.S. employment report is curtailing movements, as traders do not want to be squeezed by a stronger set of numbers but would sell the USD on a weak set of data.  USD/JPY is seen to be the leading edge of the USD movements, given the equity volatility could amplify the JPY movements. So far U.S. equities have not trigger a new wave of carry trades being lifted, but that risk exists.  The market wants to test 144.00, which could happen if JOLTS today or ADP tomorrow hint at a weak NFP.  Multi week we still see 142.00.