In Tokyo, USD/JPY is trading at 144.40. The asset is below 144.50, and as the US dollar index (DXY) picks up on selling, it is expected to be volatile. The DXY dropped below 111.00 and could go back to Wednesday’s low of 110.00.

After a slow session in New York, S&P500 futures have gone up a lot, which shows that people are more willing to take risks. Last-minute gains in New York and Tokyo have made people more willing to take risks, which has hurt the DXY.

Japanese currency investors have been ignoring North Korea’s political problems for a while, but nothing has been fixed. Japan has set up military drills without warning in response to North Korea’s ballistic missiles.

Going forward, NFP statistics will be very important. Job growth is slowing down. Instead of 315k, the US NFP is expected to be 250k. The average hourly wage is expected to go down 10 bps to 5.1% per year.

High price pressures in the US economy mean that people need to make more money. A drop in the labour cost index could make people feel down.

Conclusion

Along with comments from the FOMC and bond yields, this will drive demand for the USD. The USD/JPY should also go up if people feel like taking risks.