At mid-day on Thursday, the USD/JPY broke the support of the channel up pattern, which had guided the rate since late April. In the near term future, the rate was expected to reach the support of the 109.00 level, which had been impacting the rate throughout the recent history.
Economic Calendar
The USD/JPY could react to the release of the US Unemployment Rate, Average Hourly Earnings and Non-Farm Employment Change on Friday at 12:30 GMT. Since December, the rate has moved from 19.7 to 34.0 pips.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
If the 109.00 level provides support, the rate would most likely aim at the resistance of the 55 and 100-hour simple moving averages near 109.30. In the case of the SMAs failing to provide resistance, the USD/JPY could reach for the resistance zone near 109.50.On the other hand, a failure of the 109.00 mark could result in the rate declining first to the 200-hour SMA at 108.90 and afterwards the weekly simple pivot point at 108.80.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, it can be observed that the rate's recent surge was supported by the 55-day simple moving average. Most recently, the simple moving average had reached the 50.00% Fibonacci retracement level at 108.57.Daily chart
On Wednesday, traders on the Swiss Foreign Exchange were 63% short on USD/JPY. By mid-Thursday, the sentiment was 61% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 60% to buy the pair.