AUD/JPY extends recovery to 94.00 as focus shifts to Japanese employment data

• AUD/JPY has moved to 94.00 as yen bulls lose momentum ahead of employment data.
• Japan’s jobless rate may trim to 2.5% vs. 2.6% reported earlier.
• The downbeat aussie Retail Sales data may keep the antipodean on the back foot.

The AUD/JPY pair has witnessed a firmer recovery after printing a low of 93.57 on Thursday. The risk barometer has rebounded after sensing a loss of momentum. The downside move in the cross exhausted as investors turned cautious ahead of the Japanese employment data.

On Thursday, the commentary from Bank of Japan (BOJ) Deputy Governor Masayoshi Amamiya strengthened the Japanese yen. BOJ policymaker supported the monetary policy easing and its continuation to support the wage rates as the catalyst will remain a key driver to keep inflation rate above 2%.

It is worth noting that the Japanese economy has failed to return to the pre-pandemic growth levels led by lower demand and inflation rates. To accelerate the same, the BOJ is keep buying the Japan Government Bonds (JGBs) and is focused to deploy helicopter money in the economy.

Apart from that, higher consensus for Japanese employment data also strengthened the yen bulls. The jobless rate may trim to 2.5% vs. the prior release of 2.6%. Also, the Jobs/Applicants ratio is expected to increase to 1.25 from the former figure of 1.24.

Meanwhile, the aussie bulls are likely to remain in the hangover of the downbeat Retail Sales for a little longer. The Australian Retail Sales data landed at 0.2%, significantly lower than the expectations of 0.5% and the prior release of 0.9%. The economic data was highly likely to remain upbeat as a higher inflation rate is resulting in more payouts by the households.