A stellar U.S. non-farm payrolls number -- followed by a solid ISM -- have driven USD/JPY back above where it broke down Wednesday on the dovish FOMC turn, putting 110 hurdles back in prospect.
Today's strong, yet not inflationary, economic news is pushing Treasury yields, U.S. stocks and the USD higher.
USD/JPY gains are aided by the notion that U.S. economy is something of an oasis within the slowing global economy.
U.S. jobs data nLLA1DEFI9 and ISM show robust demand and a lack of commensurate inflation to force the Fed to rethink its hold on tightening.
But NFP's 240k 3-month average and ISM's new orders index rebound to 58.2 from 51.3 nN9N1YT00V dim 2019 rate cut bets made after the FOMC.
The rate cut focus has shifted back to 2020, with higher rates out the curve bolstering the buck, particularly amid broadening signs of weakness in Asia and Europe.
The still unresolved U.S.-China trade negotiations are a lingering threat, but after today's U.S. data, that might be seen as a bigger risk to Asian economies than the U.S. USD/JPY is back to eyeing its 2019 high and options entangled 110 resistance.
Might take tangible trade war dissolution to lift risk enough for a 110 breakout toward the 200-DMa at 111.26.