Important events today:

12:30 UTC – US: May labor market.

The United States will have a fresh labor market release for May today. The leading employment indicators for services, manufacturing and ADP are signaling better than median forecasts. The release of positive data will support the dollar in the second half of the day.

The Fed provided fresh statistics on the US banking system – dollar liquidity shrank by $45bn this week as the Fed’s bond portfolio shrank. The U.S. Treasury Department spent only $1bn from its stash, saving cash as the government debt limit will be officially approved only tonight. The liquidity squeeze is also favorable for a stronger dollar and a drop of USDJPY to the nearest support levels should be used to open Buy positions.

Recommendations: Buy 138.43/138.00 and TP 139.50.