The USD/JPY passed the resistance of the June high at 109.83, where a 61.80% Fibonacci retracement level was located at.
Moreover, by the middle of Tuesday's trading, the rate had almost reached the 110.50 level. Namely, the weekly R1 simple pivot point at 110.24 and the 110.00 level failed to stop the surge.
Economic Calendar
On Wednesday, at 13:15 GMT, the US ADP Non-Farm Employment Change is set to be released. This event has caused USD/JPY moves from 3.9 to 13.3 pips since November.
On the same day, at 15:00 GMT the US ISM Manufacturing PMI is set to be scheduled. The rate has moved from 5.0 to 14.4 pips on the announcement.
The week will end on Friday with the top event, as the US Employment data is set to be released at 13:30 GMT. The event will consist of three data sets being released. Combined they have caused moves from 19.7 to 34.0 pips on the charts.
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
If the 110.50 mark provides resistance, the pair could consolidate its recent gains by trading sideways or retracing back down to the support of the weekly R1 simple pivot point at 110.24.In the case of the 110.50 level failing to provide resistance, the pair could reach for the weekly R2 simple pivot point at 110.77 and afterwards the 111.00 mark.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the channel up pattern, which guided its surge since December 21. It can be observed that the upper trend line of the pattern have in on the rate's third attempt to pass it.
Next notable resistance cluster on the daily candle chart is the zone that surrounds the 112.00 mark. The zone consists of the 2019 and 2020 high levels. Zoom out to see how the rate acted near this level during both of those years.
Daily chart
On Monday, traders were 73% short on USD/JPY. On Tuesday, the sentiment was 74% short.
The Swiss Foreign Exchange open positions have been mostly short for almost a month. It appears that traders expect a larger retracement back down, despite the rate gaining new heights.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 65% to sell.
Previously, 59% of orders were to buy.