On Tuesday morning, the USD/JPY currency exchange rate tested the resistance of the 105.70 level.
The rate was expected to pass this resistance, as the support of the 100-hour simple moving average had proven that it has the required strength to push the pair up.
Economic Calendar
On Wednesday, at 12:15 GMT the ADP Non-Farm Employment Change data release could cause a move. For example, the USD/JPY has moved from 8.3 to 19.6 pips on the announcement.
On the same day, at 12:30 GMT the US are publishing GDP data. A move of 5.5 to 38.9 pips has occurred on the release. However, the 38.9 pip move was an anomaly caused by the coronavirus.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
The week will end with a monthly data release. The US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate are scheduled for 12:30 GMT. USD/JPY has moved from 11.7 to 48.7 pips on the announcement.
Click on the link below to see the historical reaction tables.
USD/JPY short-term daily review
Since Monday, the USD/JPY currency pair has been trading along the lower line of the short-term ascending channel.From a theoretical perspective, it is likely that some upside potential could prevail in the market. In this case the exchange rate could face the resistance formed by the monthly PP and the weekly R1 in the 106.02/106.24 range.
Meanwhile, it is unlikely that bears could prevail in the market in the short term, and the currency pair could decline below the support range formed by the weekly PP, the monthly S1, the Fibo 23.60% and the 200-hour SMA in the 104.99/105.12 area.
Hourly Chart
On the daily candle chart, it can be spotted that the 55-day simple moving average was strengthening the 106.00 level.
Daily chart
On Tuesday, traders of the Swiss Foreign Exchange were neutral, as 53% of all open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were 67% to sell.