USD/JPY rise before the job report

• The USD/JPY rises to 152.10 in the middle of a feeling of the agrio market.
• The markets await US employment data, with the NFP expected in 175K.
• Fed officials remain cautious about fees cuts despite the decrease in inflation.

The USD/JPY torque rose 0.48% to 152.10 on Friday, supported by the resilience of the US dollar amid the cautious comments of the federal reserve officials. With the US labor market, keeping solid, the operators are attentive to the next non -agricultural payroll report (NFP), which is expected to show an increase of 175K jobs in January. An estimate suggests a slightly stronger reading of 199K, pointing out a continuous strength of the labor market.

With the expectations pointing to an unemployment rate without changes of 4.1% and a salary growth stabilizing at 3.8% year -on -year, the markets remain attentive to any surprise in the data. Given the recent trends of unemployment requests and other indicators, there is a potential for a surprise upwards, which could reinforce the cautious posture of the Fed on rates cuts.

Those responsible for the monetary policy of the Federal Reserve continue to oppose the early cuts of fees. Logan, from Dallas’s Fed, said that even if inflation is approaching 2% in the coming months, would not necessarily justify imminent flexibility. She emphasized that a stable labor market along with lower inflation would indicate a neutral policy posture, leaving little room for short -term cuts. Meanwhile, Goolsbee, from the Chicago Fed, highlighted the growing fiscal uncertainties, suggesting that they could slow down the rhythm of future rates reductions. Fed Bowman and Kugler officials will also speak today, potentially providing additional information about the monetary policy direction.

In fact, the Fed feeling index remains deeply in hard line territory and provides a mattress to the US dollar, but the bank’s position could change after today’s data.

USD/JPY TECHNICAL PERSPECTIVE

The USD/JPY continues to win traction, with the technical indicators recovering from the recent minimum. The relative force index (RSI) is close to level 30, which suggests intense sales pressure that could trigger a correction. If the buying interest persists, the pair could extend the profits towards resistance in 152.50, while the support remains in 151.50. The perspective favors the bullies, provided that the torque is maintained above the key levels.