On a year-to-date and quarter-to-date basis, the Yen is the second worst performing G10 currency with only NOK performing worse. Economists at MUFG Bank analyze USD/JPY outlook.

Strong NFP would likely lead to further USD/JPY buying

“The debt ceiling issue has been resolved and a strong jobs report at the end of the week would likely see markets price more fully a Fed rate hike on 13th June that would likely then lead to further USD/JPY buying.”

“If events fuel another quick move to the 145 level, above there would certainly be in the range of intervention. It would in addition serve to highlight another unwelcome by-product of YCC and could play a role in swaying Governor Ueda to scrap YCC later this year.”