Economic Calendar
On Friday, watch out for the US employment data release. The release is bound to impact the financial markets through the value of the US Dollar. The publication is set to consist of the Non-Farm Employment Change, Average Hourly Earnings and Unemployment Rate.
USD/JPY hourly chart analysis
An extension of the decline below the 144.00 mark could be slowed down by the 143.50 and 143.00 levels. Below these round levels the pair is set to look for support in the weekly S3 simple pivot point that might impact the pair. It is possible due to the observation that despite the fundamental nature of the drop, the rate paused near the combination of the weekly S2 simple pivot point and the 144.50 level.However, a potential recovery of the US Dollar against the Japanese Yen is likely to encounter resistance in the weekly S2 at 144.69 and the 144.50 level. Higher above note the previously ignored 145.00 and 145.50 levels and the weekly S1 simple pivot point at 145.73.
Hourly Chart
USD/JPY daily chart's review
As reported on Wednesday -"On the daily candle chart, the rate has passed below the 100-day simple moving average, as the resistance of the 50-day SMA held near 149.60 and caused the recent decline.Moreover, the pair has passed below the 1998 high level of 147.60 that had previously acted as resistance and support. Most recently, it appeared that the level was turning into a resistance.
In regards to the near term future, note the trend line of the channel up pattern that captures the surge of 2023. Breaking below the trend line could result in a major move. However, support might be found in the 144.60/145.95 range and the 200-day simple moving average near 144.00."
On Thursday, the sharp move was observed, as the trend line broke and then support zone failed. However, during the second part of the day's trading the 200-day simple moving average has holding as support at 143.92. A breaking of the SMA is likely to result in a move that could hit the 140.00 mark.
Daily chart
Read More: Technical Analysis
Traders take the loss and go short
On Thursday, traders were 59% short, but pending orders in the 100-pip range around the current rate were 69% to buy.
On Wednesday, traders were 75% long and pending orders were 51% to buy.
Note that during the ongoing decline, Dukascopy traders have been suffering losses, as they expected the broader surge to resume.