According to Kyosuke Suzuki, director and head of FX sales at Societe Generale, Tokyo
- USD/JPY may not get much upside if US payrolls data are within forecast
- Focus will shift to next week's Summit of the Americas to see if it sheds some light on future US trade stance
- Doesn't expect positive surprises from today's jobs report or next week's CPI figure
- That means it would only be supportive to keep USD/JPY around 107 levels
- Next key point is Abe-Trump summit to see if Trump demands something from Abe
- Even if US-Japan trade tension rises, it's not something that can be resolved immediately
- Downside to USD/JPY seen at 105 if that's the case
The one thing he's not highlighting is that of equities, which has been a key driver of yen pairs this week. If you are looking for an indicator of sentiment in USD/JPY, be sure to keep an eye on equities too.
The Nikkei is now down by 0.14% and Hong Kong's Hang Seng index has surrendered majority of its earlier gains too. That's helped to send USD/JPY a little lower to 107.29 currently after rebounding to highs of 107.44 earlier.
