USD/JPY: Solid jobs report, reduced expectations of Fed cut, BOJ pivot, underpinning pair

<p>A couple of items from Friday to take note of for USD/JPY traders. </p><p>1. Expectations of Federal Open Market Committee (FOMC) rate cuts have been pared back due to the solid jobs report as well as the Wall Street Journal Fed 'insider' report:</p><ul><li><a href="https://www.forexlive.com/news/forexlive-americas-fx-news-wrap-a-surprise-fall-in-the-us-unemployment-rate-lifts-dollar-20231208/" target="_blank" rel="follow" data-article-link="true">Forexlive Americas FX news wrap: A surprise fall in the US unemployment rate lifts dollar</a></li><li><a href="https://www.forexlive.com/centralbank/timiraos-fed-unlikley-to-talk-about-rate-cuts-and-perhaps-may-not-for-several-months-20231210/" target="_blank" rel="follow" data-article-link="true">Timiraos: Fed unlikley to talk about rate cuts and perhaps may not for several months</a></li></ul><p>2. Expectations of a tightening in policy from the Bank of Japan have also been watered down, Justing posted on a report discussing 3 reasons that expecting an imminent pivot from the BOJ is misplaced:</p><ul><li><a href="https://www.forexlive.com/news/no-intention-from-ueda-to-hint-at-timing-of-policy-change-report-20231208/" target="_blank" rel="follow" data-article-link="true">No intention from Ueda to hint at timing of policy change – report</a></li></ul><p>Add those two together and you have a recipe to underpin USD/JPY in the session and sessions ahead.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.