The support of the 55-hour simple moving average has managed to push the USD/JPY through the resistance of the 105.00 level, which was strengthened by a 23.60% Fibonacci retracement level.
The near term future depended on whether the SMA continues to push the rate up.
Economic Calendar
On Wednesday, the US ISM Non-Manufacturing PMI could cause a move from 6.1 to 16.0 pips.
Thursday will bring the usual weekly US Unemployment Claims at 13:30 GMT. The data has caused moves from 3.6 to 10.4 pips.
The week will end with the US monthly employment data sets at 13:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and Non-farm Employment Change will be published. The USD/JPY has moved 10.4 to 26.3 pips since September.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
Since Tuesday afternoon, the USD/JPY currency pair has been trading sideways near the Fibo 23.60% at 105.03.It is likely that the exchange rate could gain support from the 55-hour SMA near 104.96 and extend gains within the following trading session. In this case the rate could target the weekly R2 at 105.80.
Meanwhile, note that the currency pair would have to exceed the weekly R1 at 105.28. If the given resistance holds, the pair could bounce off and target the weekly PP at 104.42.
Hourly Chart
On the daily candle chart, the rate has broken the channel down pattern, which guided it since June. This signals an end of a half a year trend. In addition, the rate broke the resistance of the 100-day simple moving average at 104.40.
In regards to the near term future, note that the 100-day SMA was strengthening the support of the weekly simple pivot point at 104.42. In the meantime, the 200-day SMA was providing resistance at 105.60.
Daily chart
On Tuesday, on the Swiss Foreign Exchange 56% of open position volume was in short positions.
On Wednesday, 59% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 61% to sell.