By: DailyForex.com
The U.S. Dollar edged up against the Japanese Yen during Monday’s Asian trading session, the USD/JPY pair was able to gain additional traction after the U.S. labor report for April came in last Friday with unexpected improvements in the numbers. That data, that new private sector jobs improved while the unemployment rate fell, helped to alleviate some concerns about the U.S. economic health and outlook.
As reported at 10:29 a.m. (JST) in Tokyo, the USD/JPY pair was trading at 99.09 Yen, a gain of 0.1% and a total gain of 1.1% from Friday’s labor announcement. Analysts believe that the Yen is likely to be broadly on the defensive now thanks to the improvement in risk sentiment. The AUD/JPY pair also had impressive gains, moving 1.8% higher since Friday while the NZD/JPY pair moved 1.6% higher.
The USD/JPY pair has been stalled at 99.95 Yen, a 4-year peak struck just last month; a rally in the greenback might finally give investors the long-awaited breach of the key 100.00 level. Currency strategists believe that given the U.S. Dollar’s improved outlook and expectations that the Bank of Japan will further devalue the Yen, the pair could eventually see a rise above the 100.00 level.