Japanese Yen Higher Amid Rising Risk Aversion

The Japanese yen climbed against its major counterparts in the Asian session on Friday amid rising risk aversion, as oil prices retraced gains and a private survey showed that China's services sector contracted further in March.

Survey data from IHS Markit showed that China's services activity contracted in March due to the impact of the COVID-19 outbreak on demand and supply chains.

The Caixin services Purchasing Managers' Index rose to 43.0 in March from 26.5 in February. However, a score below 50 indicates contraction.

Oil prices fell after soaring on Thursday following President Donald Trump's comment that he expects Russia and Saudi Arabia to co-operate on output reduction.

The United States reported a record 6.648 million jobless claims last week led by shut downs to contain the virus.

Investors await the March payroll data due at 8:30 am ET. Economists are expecting a drop of 100,000 jobs last month, while the unemployment rate is seen rising to 3.8 percent.

The number of confirmed coronavirus cases crossed the 1 million mark globally with a death toll of 53,030, according to the new tally from Johns Hopkins University.

Around 1,015,403 people have been diagnosed with the novel coronavirus across the world.

The latest survey from Jibun Bank showed that the services sector in Japan continued to contract in March, and at a much steeper rate, with a services PMI score of 33.8.

That's down sharply from 46.8 in February, and it moves further beneath the boom-or-bust line of 50 that separates expansion from contraction.

The yen rebounded to 107.80 against the greenback, from a 3-day low of 108.20 hit at 7:15 pm ET. The currency is likely to locate resistance around the 105.00 level.

The yen rose to 116.84 against the euro and 133.45 against the pound, from an early low of 117.39 and a 3-day low of 134.09, respectively. If the yen rises again, it may test resistance around 112.00 against the euro and 128.00 against the pound

Reversing from an early low of 111.02 against the franc, the yen ticked up to 110.66. Next immediate resistance for the yen is seen around the 109.00 level.

The yen gained to 63.64 against the kiwi, 65.29 against the aussie and 76.08 against the loonie, off its early lows of 64.02 and 65.61 and a 3-day low of 76.63, respectively. The yen is seen finding resistance around 60.00 against the kiwi, 60.00 against the aussie and 72.00 against the loonie.

Looking ahead, PMI reports from major European economies and Eurozone retail sales for February are due in the European session.

The U.S. jobs data and ISM services PMI for March are scheduled for release in the New York session.