03.04.2020 USD/JPY Daily Analysis

03.04.2020 USD/JPY Daily Analysis

USD/JPY is trading today at 108.13, it went up with 0.23. This is mainly because of the sudden rebound in the oil price; oil is priced in dollars and the US is also the world top oil and gas producer. This happened after Trump stated that he spoke with both Russia and Saudi Arabia on how to lower production and bring prices back up. This made the US dollar stronger resulting in the USD/JPY pair going up. In addition the dollar was in demand in early trading in Europe today, as investors sought safety following the dire U.S unemployment figures which showed the extent of the economic fallout from the coronavirus pandemic. The increase in strength of the USD because of the poor US economic data reflects the  dollar's status as a counter cyclical currency, hence the rise of the USD/JPY pair today. Events Today we are waiting for the US events to see what effect they will have on the USD/JPY pair. There is non-farm employment change, which measures change in the number of employed people during the previous month, excluding the farming industry. There is also the Average hourly Earnings which measures change in the price businesses pay for labor, excluding the farming industry. And the last one is the Unemployment rate which measures  the percentage of the total work force that is unemployed and actively seeking employment during the previous month. If the actual comes out more than the forecast it means it will be good for the USD and it will have an impact on the USD/JPY pair.