During Monday's first half of European trading hours, the USD/JPY continued to recover. By the middle of the day, the rate had reached back up above the 105.60 level.
In the near term future, the rate was expected to be pushed up by the support of hourly simple moving averages.
Economic Calendar
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
At the end of last week, the USD/JPY exchange rate reversed north from the Fibo 23.60% at 105.03 and jumped to 105.60.It is likely that the currency pair could gain support from the 55-, 100– and 200-hour SMAs in the 105.50 area and trade upwards in the short run. Note that the pair would have to exceed the weekly R1 at 105.77.
If the given resistance level holds, it is likely that the exchange rate could trade sideways in the short run. Otherwise, the rate could target the psychological level at 106.40.
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 during the last week.
A test of the 55-day SMA could provide resistance this week.
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 Monday, traders of the Swiss Foreign Exchange were short, as 60% 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 56% to sell.