UJPY - Change The Month Change The Trend?

• The euro held support last week near $1.1700, and the greenback held below JPY111.00. It is difficult to read much into the price action due to the month- and quarter-end adjustments, which also is the end of many governments and corporate fiscal years.
• At the same time, the dollar bulls may be puzzled by the lack of a more positive response to news that US jobs growth last month was nearly half again as much as forecast (916k vs. Bloomberg's survey median forecast of 660k).
• The price action review in the foreign exchange market shows that this could be a near-term inflection point, which we have sensed is coming. However, there is still another test pending about how much of the reflation trade is indeed discounted. That other shoe to drop is inflation.

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