- USD/JPY may elevate to 124.00 as investors’ focus has shifted to Employment data.
- BOJ Kuroda demands a wage hike along with the price hike to keep inflationary pressures stable.
- The Unemployment Rate in the US and Japan will remain stable at 3.6% and 2.6% respectively.
The USD/JPY pair has displayed a sheer upside move in the early Asian session. A bullish open-drive session has pushed the asset to near Friday’s high at 127.34. The asset is scaling sharply higher right from the first needle of the trading session.
A wide divergence in the monetary policies is impacting the Japanese yen. The yen bulls are worried over the grounded inflation in its region. On Friday, the Statistics Bureau of Japan reported the Tokyo Consumer Price Index (CPI) at 2.4%, lower than the estimates of 2.7% and the prior print of 2.5%.
A statement from Japan’s Prime Minister Fumio Kishida, last week, that the Bank of Japan (BOJ) should make some efforts to achieve the targeted inflation rate of 2% has renewed growth concerns. In response to that BOJ Governor Harihuko Kuroda stated that the price rise should be accompanied by a wage hike if stable inflation is required at desired levels.
This week employment data from Japan and the US will keep investors busy. The Statistics Bureau of Japan is likely to display an improvement in the Jobs/Applicants Ratio at 1.23 against the prior print of 1.22. Also, the Unemployment Rate is expected to remain stable at 2.6%. On the US front, the US Nonfarm Payrolls are expected to land at 310k vs. 428k last recorded. The jobless rate may remain stable at 3.6%.