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8 Mar 2013
Forex: USD/JPY extends gains to fresh 3 ½-year high
The dollar continues to advance against the yen, having posted a fresh 3 ½-year high as investors wait the US jobs reports due for release at 13:30GMT.
USD/JPY extended gains during the European session and recently reached its highest since August 2009 at 95.79 as the yen continues to underperform, also weighed by disappointing Japanese data. At time of writing, USD/JPY is trading around 95.70, recording a 0.9% gain on Friday and its third daily rise in a row.
Market is pricing in a positive US NFP reading, which is supporting the USD/JPY, Valeria Bednarik, chief analyst at FXstreet.com commented. However, if NFP data disappoints the pair could run back south, "with former highs around 94.60 as main bearish target", Bednarik said. "The strong upward trend however, will hardly be affected, and investors will be looking to buy on dips".
Positive data will likely boost USD/JPY that could even reach 96.70 if data comes in much better than expected, according to the analyst.
USD/JPY extended gains during the European session and recently reached its highest since August 2009 at 95.79 as the yen continues to underperform, also weighed by disappointing Japanese data. At time of writing, USD/JPY is trading around 95.70, recording a 0.9% gain on Friday and its third daily rise in a row.
Market is pricing in a positive US NFP reading, which is supporting the USD/JPY, Valeria Bednarik, chief analyst at FXstreet.com commented. However, if NFP data disappoints the pair could run back south, "with former highs around 94.60 as main bearish target", Bednarik said. "The strong upward trend however, will hardly be affected, and investors will be looking to buy on dips".
Positive data will likely boost USD/JPY that could even reach 96.70 if data comes in much better than expected, according to the analyst.