Can USD/JPY keep recovering?

By FXStreet USD/JPY has risen to the 1hr 50 sma at 111.68 in a grind from the lows of 111.04 in overnight trade and after a steady start in the US session earlier on Wall Street.

However, analysts at Rabobank explained that they do not expect USD/JPY to rise too far this year. “In view of the slow pace of world growth, concerns over the effectiveness of extraordinary monetary policy settings and the plethora of political risks we have a 12 mth target at USD/JPY116.”

As far as data goes for next week, we look to the ISM Manufacturing&Nonfarm payrolls. Analysts at TD Securities explained that the US manufacturing sectors appears to be turning a corner and we expect the ISM manufacturing index to break out of contractionary territory in March.

Meanwhile, the analysts explained that nonfarm payrolls should slow significantly due to a historical seasonal underperformance in the month of March (employment growth has averaged 150k in last 5 years). “The unemployment rate should rise modestly on account of the weak employment growth.”

USD/JPY levels

USD/JPY has been in a recovery since the break down from the converging range that is negative and targets the 110.98/111.04 recent lows. “A slip below 110.98 …read more

Source:: FX Street