The ISM non-manufacturing index gave USD/JPY the final push it needed to eat through offers at 79.00. Offers at 79.30 and 79.50.
The stars have aligned for a better-than-expected non-farm payrolls tomorrow.
Also weighing on the yen are comments from Japan’s consumer affairs minister to the WSJ.
“What the BOJ is doing right now is not enough to beat deflation. The BOJ should employ every possible measure to change people’s minds about the state of the economy,” Mr. Matsubara said in an interview.
Overnight, the BOJ’s Miyao said the central bank said it stands ready to act and that the recovery could be delayed. The ruling DPJ also called for foreign bond purchases by the BOJ in its pre-election manifesto. That could be a game-changer for the yen.
