The USD/JPY plummeted on Friday morning, as a run to safety was caused by the announcement of the US President Donald Trump that he and his wife had contracted the coronavirus.
The rate's sharp drop stopped at the 105.00 level and afterwards began a consolidation in the 105.00/105.20 range.
Economic Calendar
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.
During next week, pay attention to the economic data releases already on Monday. On Monday, at 14:00 GMT the Institute of Supply Management will publish the Non-Manufacturing Purchasing Managers Index results. USD/JPY has moved 6.7 to 10.8 pips on the event.
On Wednesday, note that some calendars show the FOMC Meeting Minutes at 18:00 GMT. This is a publication of the minutes without a rate statement. In the past, this event has not caused sharp moves, as the Meeting Minute impact comes on gradually while the markets read and analyse.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
The rate is expected to consolidate in the 105.00/105.20 range, until new news arrive of the coronavirus case of the US President Donald Trump.In the case of the President having minor coronavirus symptoms, the US Dollar is bound to recover against the Japanese Yen. In this scenario, the pair could reach back up to the 105.60 mark.
On the other hand, worse than expected symptoms could cause a continuation of the sell off and the USD/JPY would reach for 104.50.
Hourly Chart
On the daily candle chart, it can be spotted that the rate did not test the resistance of the 55-day simple moving average at 105.85. br>
In the meantime, the rate's drop was stopped by the support of the 23.60% Fibonacci retracement level at 105.00.
Daily chart
On Thursday, traders of the Swiss Foreign Exchange were neutral, as 53% of all open position volume was in short positions.
On Friday, the sentiment was 55% short.
Meanwhile, trader set up pending orders in the 100-pip range were 67% to buy.
Most likely the orders were set to take advantage of a possible retracement back up.