USDJPY – A mixed background is forming today

06.10.2023

Important events today:

12:30 UTC – US: change in non-farm payroll employment.

A mixed background is forming today. On the one hand, we can expect a continuation of the uptrend on the background of rising yields on US long-term government bonds, which always has a favourable effect on the strengthening of the dollar.

On the other hand, I expect the stock markets to continue falling, which may cause the yen to strengthen, as this currency is used in carry trade operations. In periods of sell-offs on the stock markets, investment funds close their positions on stock markets and repay loans in yen, which favours the Japanese currency.

Recommendations: flat 148.45 – 149.50.