The USD/JPY pair took off again on Friday as the Non-Farm Payroll numbers came in better than expected. The pair continues to attract inflows as the Bank of Japan continues to add to their bond buyback program, and is starting to buy 90 % of the JGBs in the market. In other words, they are monetizing the debt, which is a backdoor way of printing Yen. With this in mind, we are only buying this pair now, and will continue to do so on pullbacks that show support. We don’t sell until we see the 80 level give way on a daily close.
Written by FX Empire