USDJPY - Long Pre Non Farm Payrolls

We hold our long view on USDJPY as we await non farm payrolls on Friday anticipating the currency pair challenging resistance around 110. Last Thursday Q1 US GDP growth rate came in at 6.4% vs 6.1 % forecast contributing to the US dollar strengthening whilst the Bank of Japan had their monetary policy meeting last week. The Bank of Japan indicated that there would be no major shifts in monetary policy whist the Japanese economic recovery is moderate compared to the US's strong bounce back. This coupled with continued strong equity market performance reducing demand for the Japanese YEN could see the currency pair maintaining it's upward momentum in particular if there is a stronger than expected payroll number on Friday.