On Monday, the USD/JPY started the week by trading near the 106.50 mark, which appeared to be providing the currency exchange rate with support.
In the meantime, the rate was being approached by the 55-hour simple moving average, which caused a surge on Friday.
Economic Calendar
On Monday, at 15:00 GMT, expect the US ISM Manufacturing PMI survey results to cause a market reaction on the USD/JPY. Since October, the rate has moved from 5.0 to 13.3 base points.
On Wednesday, the US ADP Non-Farm Employment Change at 13:15 GMT will be on the headlines. However, the market does not care, as since December 2 the rate has moved only 3.9 to 13.3 pips on the release.
On the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI could cause a move from 3.0 to 16.0 pips.
On Friday, at 13:30 GMT the US will publish its monthly employment data. The release will consist of the Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. The USD/JPY has moved from 10.4 to 25.9 pips on the publication since October.
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
On Monday, the USD/JPY traded above the 106.50 mark, which appeared to be providing support to the rate. In the meantime, it has to be taken into account that the rate was supported on Friday by the 55-hour simple moving average, as it pushed the USD/JPY up.In the near term future, the rate was expected to trade sideways until the 55-hour SMA moves up and provides support. In this case scenario, the rate would start a surge and test the resistance of the 38.20% Fibonacci retracement level at the 106.86 level and afterwards the 107.00 mark.
On the other hand, the 55-hour SMA could fail to provide support. In this case the rate could decline to the weekly simple pivot point at 106.09. Note that the pivot point could be soon supported by the 100 and 200-hour SMAs.
Hourly Chart
On the daily candle chart, the channel up pattern, which captures the 2021 surge, has remained intact. The lower trend line supported the 105.00 mark, from which the rate bounced off on Tuesday.
On Thursday, the rate passed the February high level at 106.25.
Daily chart
On Friday, traders were 75% short on USD/JPY.
On Monday, on the Swiss Foreign Exchange 74% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 55% to buy.