USD/JPY: bid in Tokyo on Central Bank divergences

By FXStreet USD/JPY is on the up in the Tokyo open with Japan finally back for a full week’s work this week. The price is bid at the highest level since the end of April’s business at 107.64 the high so far.

The greenback carries on making advances across the board, despite last week’s miss in the headline for nonfarm payrolls and negativity in the background of the number. What is compelling is how the market essentially ignored the headline miss, apart from the initial knee-jerk, and did not pay attention to the detail.

Nonfarm payrolls – what’s in the detail?

The markets got one of the weakest reports in the last couple of years, with 160k net and a revised March report of 215k-208k. Hourly earnings increased 0.3%, but last month’s 0.3% was revised to 0.2%. The participation rate was 63 last, a move up, but in April that came down to 62.8, so 562k people left the labour force during the month of April.

What is alarming is whether part-time and lower paid jobs are being added while top end higher-paid work is being lost. Stocks were down initially, but then rallied on the back of the odds falling to practically zero …read more

Source:: FX Street