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USD/JPY – Will 100.00 Hold?
Tomorrow the market will get a look at the marquee event of the week -- the NFP report from US. After last month’s disappointing results, the June data is shaping up to be a possible rebound in job growth. Both the ISM Services reports as well as the ADP numbers suggest that the report could be in the 150-200K range.
A print anywhere in that vicinity is likely to prove supportive of USD/JPY which has been basing around the 101.00 level this week. While a strong employment report is unlikely to motivate the Fed on rates, it will pacify the market about the state of US economy and may push the yields on the 10 year Treasury bond higher helping USD/JPY along.
Another weak report however is almost sure to push the pair to a test of the 100.00 barrier, but given the already jittery state of Japanese policymakers any dip below that level could invite an intervention next week.