By ForexMansion.com
The USD/JPY pair approached the highest level in three weeks, recording the highest level this week at the 83.20 level, The yen continues to fall against the dollar and major currencies, with expectations that central banks in Europe and the U.S. are closer to removing stimulus as the global economy recovers, which implies that the decision to raise interest rates had become close.
Despite the drop in new jobs numbers in the U.S. private sector during the month of March, the dollar was able to maintain its gains against the Japanese yen, as the markets still awaited the infamous jobs report from the United States on Friday.
On Thursday 23:50 GMT Tankan index for large manufacturers during the first quarter will be released and expected to remain unchanged at 5. As for Tankan index for non manufacturers, it is expected to come at 2 compare to the previous reading of 1.
As for the United States of America, it will release heavy data on Friday, starting with the non-farm payrolls at 12:30 GMT, which is expected to show that the U.S. economy added 195 thousand jobs during the month of March compared with the previous reading of 192 thousand jobs.
Unemployment rate is expected to settle at 8.9% while the yearly average hourly earnings index is expected to rise by 1.9% compared with 1.7%.
ISM manufacturing index will be released at 14:00 GMT and expected to come at 61.0 compare with the previous of 61.4.
Any improvement in new jobs in the United States could drive the dollar to rise more against the Japanese yen, especially in light of expectations of a quick intervention of the Group of Seven to sell the yen in FOREX markets in case of rapid gains for the Japanese currency.
Originally posted here
