The recovery of the USD/JPY was stopped by the resistance of the 106.20 level and the 200-hour SMA. By Friday morning, the USD/JPY decline had passed various technical levels and reached below the 105.60 level.
In theory, in the near term future the rate should retest this week's low levels below 105.20.
Economic Calendar
Next week, as the last week of the month, the following week is expected to be a quiet one. However, there are events that should be watched in the case a sharp move occurs.
On Wednesday, at 12:30 GMT traders should watch the release of the US Durable Goods Orders data. The event is capable of causing volatility increases above average level.
On Thursday, the US Preliminary GDP and the US Unemployment claims are set to be published. Due to these events usually not being released at the same time, the past reactions need to be combined. Namely, in the case of the same direction surprise the volatility pips need to be added one to another. On the other hand, different results shown by each data set could cancel one another out.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
The rate was expected to be pushed down by the 55 and 100-hour simple moving averages to the 105.20 level and the weekly S2 simple pivot point at 105.12. These two levels provided support to the rate and caused the most recent retracement back up.If the rate passed the mentioned support levels, it would immediately face the support of the 105.00 level, which was strengthened by a 23.60% Fibonacci retracement level at 105.033
Hourly Chart
On the daily candle chart, the rate appears to be retracing back up to the resistance of the daily candle simple moving averages. Namely, the 55 and 100-day SMAs at 106.73 and 107.20.
Daily chart
Since Thursday, traders of the Swiss Foreign Exchange were neutral, as 52% of all open position volume was short.
Meanwhile, trader set up pending orders in the 100-pip range were 58% to buy.
Previously, the orders were 52% to buy.