During Monday's trading hours, the USD/JPY failed to pass the resistance of the technical levels that are located from 105.80 to 106.00. Namely, the 100-hour simple moving average was the level, which could not be passed after two attempts.
On Tuesday morning, the rate had retreated and found support in the 105.60 level, which kept the rate from declining.
Economic Calendar
On Tuesday, at 14:00 GMT the US ISM Manufacturing PMI is set to be published.
At 12:15 on Wednesday, the ADP Non-Farm Payrolls could cause a move from 5.5 to 17.7 pips. Dukascopy Analytics usually ignore this event because prior to August the EUR/USD move range was 5.5 to 8.4 pips. The early August release caused a 17.7 pip move.
On Thursday, watch the economic calendar two times during the day. At 12:30 the weekly US Unemployment Claims are set to be released. At 14:00 GMT, the US ISM Non-Manufacturing PMI results will be published.
On Friday, both Canada and the US are set to release their monthly employment data at 12:30 GMT. Depending on the currencies that one trades, one needs to look at different data tables, as reactions to the event vary.
Click on the link below to see the historical reaction tables.
USD/JPY short-term daily review
On Monday, the USD/JPY currency pair failed to exceed the resistance provided by the 100– and 200-hour SMAs. During today's morning, the pair was testing the 55-hour SMA near 105.74.If the 55-hour moving average holds, it is likely that some downside potential could prevail in the market, and the exchange rate could target the support formed by the monthly S1 and the Fibo 23.60% at 105.00.
On the other hand, the rate could try to exceed the given resistance. If it does not hold, it is likely that the pair could target the weekly R1 at 106.48.
Hourly Chart
On the daily candle chart, the pair has once again bounced off the resistance of the 55 and 100-day simple moving averages.
Daily chart
On Monday, traders of the Swiss Foreign Exchange were short, as 66% of all open position volume was in short positions.
By the middle of Tuesday's trading, the sentiment was 64% short.
Meanwhile, trader set up pending orders in the 100-pip range were 55% to sell.
Previously, the orders were 66% to sell.