NFP forecast upside surprise, but due to prior revisions downward for the previous releases, USD/JPY fluctuates violently.
【7/5Market overview
In Tokyo time, USD/JPY rose on the go-to day at the beginning of the month and quarter (5・10th日), with demand from domestic real-money players pushing the dollar higher to around161.39yen. However, as the Nikkei average, which had started higher, turned lower, the dollar yen also weakened, briefly slipping to around160.80yen. In European trading, the dollar/yen recovered amid a rise in cross-yen pairs, to around160.80yen.In NYtime,NFP (Non-Farm Payrolls) for June showed an increase of20.61,000 jobs (vs. expected19.01,000 jobs).The dollar/yen rose to around161.00yen, but4 and5month revisions downward also caused a quick pullback, and amid continued choppy trading with unclear direction, persistent expectations of a weaker yen led to buying on dips, lifting USD/JPY to around161.33yen. Afterwards, there was no follow-through buying, and it closed around160.76yen.