Have we also seen signs that the Yen may rising on good Japanese data?

USDJPY looks to be doing what it does often after the US jobs report , and that's take a slow meander lower. There can often be a lot of pent up energy over NFP and the Monday following usually sees some lethargy, at least over the European session

The 125.67/75 level I had chalked up pre-NFP is acting as support again and so remains a level worth watching. 125.00 has shown itself as support and that's likely to extend down to 124.90

USDJPY H1 chart

That gives us a short term range to play until we get the next kicker from US data, and there's not too much on the calendar this week to help

One thing that was particularly interesting was the move in the pair over the better Japanese GDP numbers last night. Now, the relationship between USD and JPY has always been a quirky. What is good for Japan is often good for USD, especially when it's tied in with Japanese firms operating in the US. There's a general consensus that if Japanese firms are doing well in the US it means the US is doing well. The fall last night on the better numbers could be the first tentative signs that positive Japanese data is going to translate into yen buying. It's likely that last nights moves were just as a result of the lower likelihood of the BOJ adding extra stimulus, which is going to be another big reason why the yen may see some action in the future

At some point the BOJ will want to taper (don't ask me when that will be) and if the economy does continue its slow crawl out of the hole then the market is going to start asking those questions. I still think we're pretty far from that point yet but it's worth keeping in mind

At the moment we're on one of those strong bullish runs and we need to look for signs that we might have hit that part of the show where we consolidate. 123.75/80 looks to be a decent area to look for a deeper range extension as does 123.55/60. A break of 125.00 would suggest that we might have a look further down but while we stay above the upside is the more likely outcome