The USD/JPY currency exchange rate failed to even reach the 110.00 level on Wednesday. The pair encountered resistance already at 109.88. Afterwards, the pair retraced down to the weekly simple pivot point at 109.56, which provided support.
By the middle of Thursday's trading, the rate had recovered and was expected to make another attempt to pass the resistance zone below the 110.00 mark.
Economic Calendar
There is one major notable event to watch this week. The US Employment data sets on Friday at 12:30 GMT are most likely going to impact the USD/JPY currency exchange rate.
Namely, the release of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate have caused USD/JPY moves from 21.1 to 66.4 pips since January.
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
In the case of the rate passing the 109.88/109.95 resistance zone, the 110.00 mark would immediately provide resistance. If the 110.00 is broken, the 110.20 would most likely provide resistance. A scenario, in which all of these levels are passed, could result in the rate reaching the weekly R1 simple pivot point at 110.55.On the other hand, a potential decline would look for support in the 55 and 100-hour SMAs and the weekly simple pivot point in the 109.55/109.66 range. Below this range, the June low levels and the 200-hour SMA could provide support in the 109.33/109.36 zone.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate is surging after finding support in the 50.00% Fibonacci retracement level at 108.57. In the meantime, the resistance of the 110.00 mark is being strengthened by the 61.80% Fibonacci retracement level.Daily chart
On Thursday, traders on the Swiss Foreign Exchange were 69% short on USD/JPY, as 69% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were almost neutral, as 53% were to sell.