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Forex - USD/JPY weekly outlook: March 11 - 15

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Shutterstock photo - The dollar rose to its highest level more than three-and-a-half years against the yen on Friday after stronger-than-forecast U.S. nonfarm payrolls data bolstered demand for the dollar.

The dollar rallied against the yen, with USD/JPY hitting a session high of 96.56, the highest level since August 2009, before settling at 96.04, 1.27% higher for the day and up 2.73% for the week.

The pair is likely to find support at 94.77, Friday's low and resistance at 97.75.

The Department of Labor said the U.S. economy added 236,000 jobs last month, blowing past expectations for an increase of 160,000. The unemployment rate ticked down to 7.7%, the lowest level since December 2008, from 7.9% in January.

The robust data added to speculation over an earlier-than-expected end to the Federal Reserve's easing program and saw the dollar strengthen across the board.

The yen remained under pressure as expectations for more aggressive easing measures by the Bank of Japan remained intact.

The BoJ left the size of its asset purchase program on hold at JPY76 trillion at Governor Masaaki Shirakawa's final meeting on Thursday before incoming governor Haruhiko Kuroda takes over next month.

At a parliamentary confirmation hearing earlier in the week, Kuroda said he would not set any limits on the amount of cash the central bank pumps into the economy.

Elsewhere, the yen ended the week lower against the euro, after the single currency was bolstered by less dovish than expected comments from European Central Bank President Mario Draghi at the bank's post policy meeting press conference on Thursday.

EUR/JPY hit a session high of 125.98 on Friday before settling at 124.83, up 0.42% for the day and 2.46% higher for the week.

In the week ahead, investors will be closely watching U.S. data on retail sales, industrial production and inflation to determine the strength of the economic recovery.

Ahead of the coming week, has compiled a list of these and other significant events likely to affect the markets.

Monday, March 11

Japan is to publish official data on core machinery orders, a leading economic indicator.

Tuesday, March 12

The BoJ is to publish the minutes of its monetary policy meeting. The minutes give investors a valuable insight into economic conditions from the banks perspective.

Later in the day, the U.S. is to publish data on the federal budget balance.

Wednesday, March 13

The U.S. is to release government data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity, as well as official data on import prices, business inventories and crude oil stockpiles.

Thursday, March 14

The U.S. is to release government data on producer price inflation, the leading indicator of consumer inflation and the weekly government report on initial jobless claims.

Friday, March 15

The U.S. is to round up the week with official data on consumer inflation and preliminary data from the University of Michigan on consumer sentiment. The U.S. is also to release data on industrial production, the capacity utilization rate and manufacturing activity in New York state. - offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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