Dollar Flat Against Yen as Investors Await U.S Jobs Data

 
   By Hiroyuki Kachi 
 

        The dollar was almost flat against the yen amid quiet trade in Asia on Friday as investors took a wait-and-see stance ahead of closely monitored U.S. jobs data due later in the day.
        As of 0450 GMT, the greenback was at Y102.35 from Y102.32 in late Thursday trading in New York.
        Many players have been unwilling to make any major moves before the release of the U.S. payroll data for April, the latest gauge of the strength of the U.S. economy. Investors hope the figures will give a clear direction for the greenback against the Japanese yen after three months in which the pair has been stuck in a tight range between Y101 and Y104.
        The jobs data may provide "the right moment to go ahead with dollar buying and yen selling," said Yunosuke Ikeda, head of FX strategy and global market research at Nomura Securities.
        The market consensus is for the data to show a strong increase of 2l8,000, leaving little room for a more positive surprise.
        Mr. Ikeda says the U.S. economic recovery is already becoming clearer to see along with progress in Japan's economic policy, thus making it easier to draw up a scenario for a rise in the greenback against the Japanese currency.
        But some strategists say the immediate response to the data could be in the opposite direction.
        "As for the short term reaction, there may be a bigger risk on the downside rather than the upside," for the U.S. dollar against the yen, after the payroll data, said Osamu Takashima, chief FX strategist at Citi Bank Japan.
        Mr. Takashima said his impression is that market expectations are relatively high, even after taking into account a rebound from bad weather. That sets up a greater possibility for disappointment. He said he can't rule out the greenback sliding to Y101.50 over the short term if the data is worse than expected.
        The euro was at $1.3862 from $1.3865 and at Y141.88 from Y141.91.
        The WSJ Dollar Index, a measure of the dollar against a basket of major currencies, was up 0.03% at 72.87.
        Write to Hiroyuki Kachi at Hiroyuki.Kachi@wsj.com
        (END) Dow Jones Newswires

        May 02, 2014 02:02 ET (06:02 GMT)