On Tuesday, the USD/JPY revealed a rising wedge pattern, which had guided the rate since October 28.
Meanwhile, in regards to the near term future, the pair was expected to reach for the 105.00 level.
Economic Calendar
US Elections on Tuesday are bound to take away all attention from the macroeconomic data releases. However, there are things to note.
On the day after the US Election, on Wednesday, the US ISM Non-Manufacturing PMI will be published at 15:00 GMT.
On Thursday, expect the weekly US Unemployment Claims to cause a minor move at 13:30 GMT. Throughout October, the event has caused USD/JPY moves from 2.9 to 8.5.
Later in the day, at 19:00 GMT, the US Federal Reserve will make a Rate Statement. Namely, the bank will react to the US Election and the following market reaction. Previously, the Fed had stated that they intend to stop a market crash, if one starts due to the election results.
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
The currency exchange rate has moved from 10.4 to 48.7 pips on the announcement since June.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
From a theoretical point of view, it is likely that the exchange rate could trade upwards within the given pattern in the short term. In this case the rate could face the resistance formed by the Fibo 23.60% and the monthly S3 circa 105.00.On the other hand, the demand for the Japanese Yen as for the safe-haven currency could increase due to the US Presidential election. Thus, the currency pair could trade downwards in the short term.
Hourly Chart
On the daily candle chart, the rate has bounced off the support of a large scale descending triangle pattern.
If the pattern remains in force, the rate should aim at the upper trend line of the pattern. However, the 55-day SMA could provide resistance, as it is located in the patterns borders.
Daily chart
On Tuesday, traders of the Swiss Foreign Exchange were neutral, as 52% of all open position volume was in long positions.
In the meantime, trader set up pending orders in the 100-pip range around the rate were 54% to sell the pair.