The USD/JPY pair traded in a narrow range early Thursday after the greenback returned to record gains against other majors, which enabled it to hold ground against the Japanese yen after its previous losses.
Despite the strong factory orders numbers about theU.S.economy, risk aversion returned to the financial market once again as fears regarding the sovereign crisis in Euro Zone renewed beforeFrancesells its bonds.
On the other hand the Japanese yen advanced to its highest level in 11 year against the euro with expectations that the banks and governmental institutions inFrancewill fail to raise funds.
Each of the yen and the greenback started Thursday with strong gains against other majors, which drove the USD/JPY pair to move in a narrow channel without specifying a particular direction.
TheUnited States of Americawill issue a number of economic data on Friday, starting with the non-farm payrolls at 13:30 GMT, which is expected to show that theU.S.economy has added 150 thousand jobs during the month of December compared with the previous reading of 120 thousand jobs.
Unemployment rate during the month of December is expected to increase to 8.7% from the prior of 8.6%, while the yearly average hourly earnings index is expected to advance by 2.1% from the previous reading of1.8%.
Any improvement in new jobs in the United States could drive the dollar to raise more against the Japanese yen, as it reflect the strongest recovery in employment sector and the U.S. economy as whole.
Originally posted here
