Payrolls: The risk is all to the upside
The major risk today is for US payrolls to be stronger than expected. In the aftermath of Hurricane Sandy, the market is primed for a weak report. Reaction to a weak report is likely to be muted, as a result. The risk is that we get a firmer number. The market is not positioned for that outcome.
If we do get a solid report, buying USD/JPY for a quick pop is the play of the day.