On Friday morning, the upper trend line of the channel down pattern and the 100-hour simple moving average failed to provide resistance to the USD/JPY currency exchange rate. Namely, the pair surged above them and touched the 113.50 mark, before retracing to look for support in the 100-hour SMA.
Economic Calendar
This week, the main event will be the release of the US employment data on Friday at 13:30 GMT. The release will consists of the publication of the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
The rate has moved from 25.4 to 33.4 pips on the employment release.
In addition, take into account the US ISM Services PMI survey results on Friday at 15:00 GMT. This event has caused moves from 8.5 to 35.4 base points.
Click on the link below to find out more about data releases of this and other currency exchange rates.
USD/JPY short-term review
A resumption of the surge of the USD/JPY pair might first test the resistance of the 113.50 level. Above the 113.50 mark, this week's high levels at 113.88/113.97, the 200-hour SMA near 114.00, the 114.00 mark by itself and the weekly simple pivot point at 114.01 make up a major cluster of resistance.However, a potential decline of the rate might look for support in the 100-hour simple moving average at 113.25 and the 50-hour simple moving average at 113.08. Below the SMAs, note the 112.53/112.66 support zone, which represents this week's low levels.
Hourly Chart
USD/JPY daily chart's review
The USD/JPY passed the support of the 50-day simple moving average. Further support could be provided by the 2019 and 2020 high level zone, which was broken in October.Daily chart
On Friday, on the Swiss Foreign Exchange, traders were short, as 74% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 63% to sell.
Since Wednesday, the positions were 73% short and orders were 52-56% to buy.