The economic data shows the ineffectiveness of the Japanese government actions.
Today the balance of payments showed a decrease from 1.63 trillion yen to 1.41 trillion yen against the forecast of 1.52 trillion.
The volume of bank lending reduced - this time, it fell from 2.2% to 2.0%. In May, the average cash earnings decreased by 0.2%, while investors expected growth of 0.5%.
Yesterday the head of the Bank of Japan Kuroda said the current quantitative easing program will be continued till the target level of 2.0% will be reached. However, the pair USD/JPY is descending sixth consecutive sessions.
Today, all the attention is focused on change in Nonfarm Payrolls. The forecast is 165K-180K vs. 38K in May.
The overall unemployment rate may be slightly corrected after the previous decline to 4.7%. However, the average hourly earnings are forecasted to grow by 0.2%. The consumer credit is forecasted to grow from 13.4 billion to 16.7 billion in May.
If nonfarm payrolls data is positive, the pair USD/JPY may rise to the 101.30 area. If the data is weak, the pair may fall to the 99.30 area.
How to trade
We would buy call options if the pair rises above 100.93. We would buy put options if the pair falls below 100.28.
Expiry time: 20:00