As a result, the USD/JPY jumped and shortly reached above the 125.00 mark. Moreover, the rate passed above the late 2015 high level at 123.70. However, by the middle of the day, the rate had retraced back down to the support of the weekly R1 simple pivot point at 123.44.
Economic Calendar
There are nine sets of data being released this week, which might cause an impact on currency valuations. Five of the nine are US employment datasets.
The week's notable publications will start on Wednesday at 13:15 GMT, as the ADP Non-Farm Employment Change is set to be published.
Also on Wednesday, at 13:30 GMT, the US Final GDP might cause minor USD moves.
On Thursday, at 13:30 GMT, minor US Dollar moves could occur due to the publication of the weekly US Unemployment Claims.
The top event of the week will occur on Friday, as at 13:30 GMT the US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate are set to be published.
The week's events are scheduled to end at 15:00 GMT with the publication of the US Institute for Supply Management Manufacturing Purchasing Managers Index survey results.
Click on the link below to find out more about data releases of this and other currency exchange rates.
Hourly Chart
If the rate resumes to surge, the USD/JPY might once again test the resistance of the 125.00 mark, before reaching the 2015 high level at 125.85. In the meantime, the pair could encounter resistance in the 124.00 level and the weekly R2 simple pivot point at 124.61.
On the other hand, a decline below the weekly R1 simple pivot point at 123.44 would most likely look for support in the 123.00 level and the 123.50 mark, which is strengthened by the 50-hour simple moving average.
USD/JPY daily chart's review
On the daily candle chart, the historical high levels of the USD/JPY currency exchange rate have been marked.Daily chart
On Monday, on the Swiss Foreign Exchange, traders were short, as 75% 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 the USD against the JPY.
On Friday, 74% of volume was short and pending orders were 66% to buy.