USD/JPY Bears step in to close the opening gap

• USD/JPY bears move in from key resistance. 
• All eyes will turn to the NFP report on Friday.

USD/JPY is higher by some 0.2% which has rallied from a low of 132.98 to a high of 133.38 so far. The pair has jumped into last week´s resistance although only to meet supply again, putting the pair back under pressure in Tokyo. 

There has been a slew of data from the Bank of Japan´s first-quarter Tankan survey showing a small rise in inflation expectations and Japanese Jibun Bank Manufacturing PMI actual coming in at 49.2 vs. the previous 48.6. 

Meanwhile, risk-off markets are kicking in t the start of the week due to the weekend news regarding the oil production cut and soaring oil prices.  Saudi Arabia and other OPEC+ oil producers have announced further oil output cuts of around 1.16 million barrels per day. In a statement, the Saudi energy ministry said that the kingdom’s voluntary cut was a precautionary measure aimed at supporting the stability of the oil market. Consequently, WTI crude oil opened for the week with a significant price gap to print $81.51 during the early hours of Monday’s Asian session. 

Looking ahead, the March jobs report Friday will be the data highlight in the Nonfarm Payrolls. The consensus stands at 240k vs. 311k in February, while the Unemployment Rate is seen steady at 3.6%.  Average hourly earnings are expected to slow to 4.3% for the year vs. 4.6% in February.  

´´It's worth noting that the data will come on Good Friday.  With markets likely to be very thin, we could get some outsize movements from the numbers, whether good or bad,´´ analysts at Brown Brothers Harriman explained.  ´´Ahead of NFP, ADP reports its private sector jobs estimate Wednesday and is expected at 210k vs. 242k in February.  Other key labor market data will be reported this week.  February JOLTS job openings will be reported Tuesday and is expected at 10.500 mln vs. 10.824 mln in February.  March Challenger jobs cuts and weekly jobless claims will be reported Thursday.´´