USD/JPY is back below 145.00

Source: Dukascopy Bank SA
During the second part of Monday's trading, the USD/JPY declined below the 145.00 mark. The decline was caused by the below expectation results of the US Manufacturing PMI results at 14:00 GMT. Namely, a fundamental adjustment of the USD value occurred and pushed the USD/JPY rate as low as 144.15. However, a recovery has followed the event.

Economic Calendar



This week, the rate is expected to move due to the publication of the JOLTS Job Openings on Tuesday at 14:00 GMT.

On Wednesday, the US ISM Services PMI is likely going to cause USD moves. The Monday's Manufacturing PMI caused a broad decline of the US Dollar.

Above all, on Friday, the US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate are set to move the markets.

Hourly Chart
An extension of the USD move up against the Japanese Yen would have to pass above the 145.00 mark, prior to testing the resistance of the weekly R1 simple pivot point at 145.34, which acted as resistance on Monday. Higher above, note the 145.50 level and the weekly R2 simple pivot point at 145.98.

On the other hand, a decline of the pair could look for support in the combination of the weekly simple pivot point at 144.26, the 200-hour simple moving average and the 144.00 level. However, note that the 144.50 level could act as support. Meanwhile, the rate has been ignoring the 50 and 100-hour simple moving averages near 144.60.

USD/JPY daily chart's review

On the daily candle chart, the pair pierced the 145.00 mark and was heading to 1998 levels, before the BoJ intervened. It appears that the 145.00 level is where the central bank draws its line and starts to beat the rate down.

Daily chart




Traders remain short

On Tuesday, on the Swiss Foreign Exchange, traders were 72% short as that amount of open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 63% to sell the USD against the JPY.

On Monday, the positions were 73% short and orders were 55% to sell.

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