USD/JPY displays a firmer mood around 130.00, US NFP eyed
|- USD/JPY has climbed to near 130.00 despite weaker DXY.
- A poor US ADP Employment Change is advocating a dismal show from the US NFP.
- The Japanese docket will report its GDP numbers next week.
The USD/JPY pair is oscillating in a narrow range of 129.70-130.05 in the early Asian session. The asset has turned rangebound after a sheer upside move from the crucial support of 127.00. The asset ended its four-day winning streak on Thursday however, a minute downside closing doesn’t advocate any reversal. The upside momentum is still intact and is expected to accelerate at a quick pace.
Despite the underperformance by the US dollar index (DXY) on Thursday after the release of the US Automatic Data Processing (ADP) Employment Change, the greenback bulls managed to outperform the Japanese yen. This indicates a compelling weakness in the Japanese yen.
The DXY slipped to near 101.70 after failing to sustain above 102.50 on poor ADP Employment Change numbers. The additional employment numbers landed at 128k, vigorously lower than the estimates of 300k. The release of the dismal ADP Employment Change numbers is indicating a disclosure of poor show from the US Nonfarm Payrolls (NFP). As per the market consensus, the US NFP is expected to report 325k job additions in the labor market. The consensus is already lower than the prior print of 428k and the 12-month average job additions of 551.6k. This may bring more offers into the DXY.
On the Japanese yen front, investors will keep an eye on the release of the Gross Domestic Product (GDP) numbers, which are due on Tuesday. The quarterly and annual GDP figures are expected to remain constant at -0.2% and -1% respectively.
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