Session outlook: USD/JPY

The two big factors here over the next 24 hours are US 10 year yields and the non-farm payroll number.

As Jamie pointed out earlier, the last time US 10-year yields were at these levels, USD/JPY was at 88.50 and there has historically always been a very strong link between the two.

A strong or weak NFP number is most likely to be played out in USD/JPY and USD/CHF: a good number being risk and USD positive and of course vice-versa.

I expect USD/JPY to trade gradually higher through the day but still trading inside an 83.50/84.30 range. The NFP is of course a lottery.

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