JPY experiences interesting developments. Overview for 05.12.2023

On Tuesday, the Japanese yen is consolidating against the US dollar. The current USDJPY exchange rate stands at 147.12.

The USDJPY pair will likely move differently on Friday, possibly dipping below the 146.00 mark. These expectations are tied to the release of US employment data, which could give grounds for further downward pullback of the pair.

Despite the Federal Reserve's robust stance, the yield on US Treasury bonds is decreasing. At the same time, both the Bank of Japan and the US Federal Reserve continue to rely on data that reflects the actual situation of their economies.

The USDJPY situation could change due to either an overly strong or weak Friday release of US labour market data. According to the consensus forecast, the unemployment rate is expected to remain at the 3.9% mark, with nonfarm payrolls potentially rising by 175-185 thousand, following a 150 thousand increase in October.

This week sees the expiration of a substantial number of USDJPY options around 148.00. This, too, could influence the instrument's movements.