The Japanese Yen (JPY) retains its positive bias for the third straight day against a broadly weaker US Dollar (USD) and keeps the USD/JPY pair close to its lowest level since early October during the Asian session on Friday.
The growing acceptance that the Bank of Japan (BoJ) will continue to raise interest rates has been exerting upward pressure on Japanese government bond (JGB) yields.
The resultant narrowing of the rate differential between Japan and other countries continues to act as a tailwind for the lower-yielding JPY.
Moreover, the uncertainty surrounding US President Donald Trump's trade policies and their impact on global economic growth, along with the risk-off mood, turn out to be another factor backing the safe-haven JPY.
Traders, however, seem reluctant to place fresh USD bearish bets and opt to wait for the release of the US Nonfarm Payrolls (NFP) report. The crucial US jobs data will influence the USD price dynamics and provide some meaningful impetus to the USD/JPY pair, which remains on track to register heavy weekly losses.
Source: FXStreet
