Despite piercing the supporting trend line, the USD/JPY did not decline. The rate found support in the 109.60 level and surged. By the middle of Wednesday's GMT trading hours, the pair had reached the 110.40 level.
Economic Calendar
This week, the rate could be impacted by the release of the US ISM Manufacturing Purchasing Managers Index release on Wednesday at 14:00 GMT.
The top day for fundamental event watchers will be Friday. On Friday, at 12:30 GMT the US will release the country's monthly employment data. Later on, at 14:00 GMT, the US ISM Services Purchasing Managers Index is set to be out.
Most impact is expected from the US employment data release. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
USD/JPY short-term review
In the near term future the pair could reach for the resistance of the zone that is located above the 110.50 mark. Above the 110.50, the rate might encounter resistance in the weekly R2 at 110.72.On the other hand, a potential decline could look for support in the weekly R1 simple pivot point at 110.31 and the previous week's high level zone near 110.25. Afterwards, a decline might find support in the 55, 100 and 200-hour simple moving averages near 110.00.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the pair has broken the resistance of the channel down pattern, which has guided the rate down since the start of July. Moreover, the pair broke the resistance of the 55-day simple moving average, which has been providing resistance to the pair since August 18.A potential target for the rate on the daily candle chart is the July and August high level zone that starts at 110.60.
Daily chart
Since Monday, traders on the Swiss Foreign Exchange were 69% short on USD/JPY.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 67% to sell.