The USD/JPY pair advanced slightly after the American dollar continued its upside movement against the euro and other major currencies. The Japanese yen is witnessing a correctional movement versus the dollar after last week’s surge, where the yen reached its highest level in 7 weeks against greenback.
Risk aversion sent U.S. bonds higher, while the yen is volatile on fears of a possible intervention from the BOJ in the FOREX market if the Japanese currency continues its rally.
The U.S. Non-Farm Payrolls rose by 244K last week, but the majors weren’t able to cover there previous losses against the greenback. The risk appetite didn’t dominate the market after the U.S. releases, since the Feds already pledged to keep rates low and also Europe’s debt woes are back to dominate the sentiment.
On Wednesday, at 05:00 GMT the Japanese economy will release the preliminary reading for the coincident index for March, where the previous reading was 106.8 and expected to retreat to 103.7. The leading index is also expected with a drop from the previous 104.2 better than the anticipation of 99.8.
As for the U.S. economy, it will report trade figures for March at 12:30 GMT, and expectations refer to a deficit of $46.6 billion widening from the previous deficit of $45.8 billion.
Written by ForexMansion.com