On Tuesday morning, the USD/JPY currency exchange rate reached above the 105.50 level and began to trade sideways between 105.50 and 105.60.
In the near term future, the currency exchange rate was expected to surge, as soon as the 55 and 100-hour simple moving averages approach the pair.
Economic Calendar
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT. The USD/JPY mostly ignores this event, as the rate has moved from 2.9 to 8.5 pips on the announcement, since September 17.
On Friday, the US Markit Flash Services and Manufacturing PMIs could cause a move from 6.2 to 22.8 pips.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
The USD/JPY currency pair has revealed a rising wedge pattern.From a theoretical perspective, it is likely that the exchange rate could continue to trade within the predetermined pattern within the following trading session. In this case the rate could reach the 105.65 mark.
In the meantime, note that the currency pair could gain support from the 55– and 100-hour SMAs in the 105.40 area. Thus, the pair could breach the given pattern north and target the monthly R1 at 105.85.
Hourly Chart
On the daily candle chart, the rate is ignoring the 55-day simple moving average, which was broken last week. Previously, the SMA kept the rate down for three months.
Daily chart
Since Monday, traders of the Swiss Foreign Exchange were short, as 68% of all open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were 51% to sell.