USD/JPY has been in recovery in the opening of Tokyo fro the downside that kicked off the day in early Asia when the Yen rallied amidst risk aversion.
The weekend news was the G20, and while the outcome suggested that markets are making a worse situation of the global economy than what it really is, there remain big concerns over the EU and subsequent ramifications for Global markets. Mervyn King, former BOE Governor, was reported in the Telegraph from his new book to have said that the eurozone is doomed to fail and will lurch from crisis to crisis unless it is broken up.
We have had a series of data for Japan in the open for the week that could be ‘ evidence of slowing Japanese economy’. While, for the week ahead, the main focus will be on China’s PMIs and the US nonfarm payrolls.
while the economy is expected to add a relatively modest 168K jobs in February with the unemployment rate that should rise modestly, climbing to 5.0% from 4.9%. “The overall tone of this report should be weak, reflecting the slowing in underlying US economic momentum,” explained analysts at TD Securities.
USD/JPY’s key downside target is the 10 dma at 113.19 today in the near term while a continued recovery targets 114.80 and within the vicinity of the 15th Feb high. Spot trades above the pivot of 113.50 on the bid with R1 at 114.69, R2 at 114.98 and R3 at 115.27. “According to the 4 hours chart however, the upside seems more constructive, with the price above its 100 SMA for the first time since early February, and the technical indicators nearing overbought territory, in line with further short term gains,” explained Valeria Bednarik, chief analyst at FXStreet, while the major targets the key target of the recovery at aforementioned 114.80 level.