On Monday, the USD/JPY currency exchange rate was facing the resistance of the 55 and 100-hour simple moving averages near 110.80. In the meantime, the pair had the support of the weekly simple pivot point, the 200-hour SMA and the last week's low level in the 110.56/110.49 zone.
In the near term future, the pair was expected to get squeezed in between the resistance and support levels. In theory it should result in a break out either up or down.
Economic Calendar
This week note the US ISM Manufacturing PMI on Thursday at 14:00 GMT.
On Friday, the US Employment data sets are bound to impact the value of the USD at 12:30 GMT.
USD/JPY short-term review
If the pair passes the resistance of the 55 and 100-hour simple moving averages, the rate would most likely reach for the last week's high level zone from 111.00 to 111.11.On the other hand, a possible decline below the support levels and the 110.50 mark could result in a decline to the 110.00 mark. Note that the 110.00 mark was being strengthened by the weekly S1 simple pivot point.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the recent jump was consistent with the channel up pattern, which has guided the rate since the middle of April.In the case of the channel holding and the rate surging in its borders, a potential target would be the 2020 high zone near the 112.00 level.
Daily chart
On monday, traders on the Swiss Foreign Exchange were 72% short on USD/JPY, as 72% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 52% to buy.