Will NFP Send The USDJPY Soaring?

Right now the market has been seeing USD seasonal strength to start the year due to some tax-related flows from US corporations(as tends to happen most years). The data out this week for the US has been mixed and the NFP print will be crucial in setting the tone for the USD to end the first week of 2024.

Watch for USDJPY selling

The 150 region on the USDJPY has seen intervention from Japan's Ministry of Finance in the recent past. Remember that the move higher in US yields, recently supported by a strong US retail sales print, also supports the dollar yen.