The USD/JPY pair went back and forth during the session on Tuesday, but essentially ended up where it started during the day. That might be because of the nonfarm payroll numbers coming out lower than expected, which of course has the markets trying to guess what the Federal Reserve is going to do next, while the Bank of Japan continues to offer very loose monetary policy. Since both central banks are doing the exact type of loose monetary policy, it’s difficult to figure out where the market should go next. Because of this, we are on the sidelines at the moment.
Written by FX Empire