Another set of Goldilocks numbers in this week's U.S. inflation and retail sales reports might lift USD/JPY, but it probably won't ensure a durable rebound.
The pair needs a close above March's 107.20 high, and traders may balk at buying into that without a decisive signal from the sources of risk aversion that have enhanced the yen's allure recently -- factors which now include a suspected cronyism scandal involving PM Abe's government nL3N1QU05E.
It's worth noting that most of Friday's USD/JPY rally came before the "Goldilocks" U.S. jobs report -- which showed strong employment growth combined with wage pressures that weren't so hot as to result in fears of an overly aggressive Fed.
But, it couldn't hold onto those gains after the numbers.
U.S.-induced trade tensions and the North Korean issue are far from resolved, even though a tempering of anxiety fueled USD/JPY's early-Friday rally.
The Abe government is also losing ground in polling due to the suspected land scandal, that may claim deputy premier and FinMin Aso.
A sustained moderation in flows to safe havens, which usually leads to JPY losses, doesn't appear too likely.
World stocks bask in U.S. jobs data glownL8N1QU2XX
Japan PM, finance minister under fire over suspected cover-up of cronyismnL3N1QU05E
N.Korean "caution" seen in announcing stance on upcoming summits -SeoulnL3N1QU269
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