BUZZ-COMMENT-JPY pairs to fresh lows, US jobs report a speed-bump?

Feb 7 (Reuters) - JPY pairs have extended their drop in Asia Friday ahead of key U.S. jobs data. Although a stronger-than-expected U.S. report could see USD/JPY pop higher, the yen looks set to climb over time on a clear shift in central bank expectations and concomitant moves in yield differentials.

The Reuters poll forecasts a 170,000 increase in U.S. January non-farm payrolls against +256,00 in December. Unemployment is seen unchanged at 4.1%.

As recent data suggests a cooling labour market, including a rise in jobless claims nL1N3OX0N8 and decline in openings nL1N3OV0S0, the risk is for a weaker report later Friday. The U.S. economy remains resilient but could see some slowing ahead.

The Federal Reserve is likely to remain on hold for now given the inflationary impact of Trump tariffs nS0N3OB01D, nL1N3OX15U but is still expected to cut rates at least twice this year and especially if the economy slows nL1N3OX1D2, nS0N3MK09S.

The European Central Bank and Bank of England are expected to remain dovish after recent easing - the latter more so than previously thought nL8N3OX18P.

With the Bank of Japan now sounding more hawkish nL4N3OW2HK, it only stands to reason JPY will remain on an upward trajectory with Japan's economy continuing to grow as per the BOJ's outlook.

For more click on FXBUZ