As expected, the decline of the USD/JPY has continued, as the 55-hour SMA approached the currency exchange rate.
On Thursday morning, the decline was stopped by a 50.00 % Fibonacci retracement level at 109.60, which previously was set as the decline's next target.
Bureau of Labor Statistics released the US Non-Farm Employment Change, which came out better-than-expected of 263K compared with forecast 181K. Note, that the US Average Hourly Earnings and Unemployment Rate were released at the same time.
According to the official release: "Notable job gains occurred in professional and business services, construction, health care, and social assistance."
US data starts on Thursday
On Thursday, the usual data starts. At 12:30 GMT the Canadian Trade Balance and the US Producers Price Index will be released. These events can cause a move from five to eighty pips. The range is explained in the weekly Economic Calendar Overview video.On Friday, there will be two times to watch the calendar.
At 08:30 GMT the UK GDP and Manufacturing Production will be published. This event can cause a move of fifteen to twenty pips.
At 12:30 GMT the Canadian Employment data will cause a move of about forty pips. At the same time the US Consumer Price Index release should cause a move of up to twenty pips. Combined they can have various impacts on the Forex market.
Watch this week's economic calendar analysis and leave comments with questions about the specifics.
USD/JPY short-term daily review
The 50.00% Fibonacci retracement level has been reached by the currency exchange rate. The rate has three future scenarios.The pair could surge up to the 110.00 level and face its resistance, if it bounced off the 109.60 level.
On the other hand, the rate could push through the Fibo and fall down to 109.10 level. At that level a pivot point was located at.
Meanwhile, take into account that the rate might also consolidate its fall and trade just above the 109.60 mark.
Hourly Chart
On the daily candle chart, it can be seen that the rate has fallen below all of the daily chart's simple moving averages. It indicates that the currency pair is oversold.Daily chart
On Thursday, on the Swiss Foreign Exchange, 52% of the total open position volume was in long positions.
The sentiment became neutral on Wednesday, as short traders took profits when the rate reached the 110.00 level.
Meanwhile, trader set up pending orders were also neutral, as 52% of pending commands in the 100-pip range were set to buy.