On Friday, the USD/JPY stopped its decline at the 103.20 level. On Monday, a surge started from this level. At mid-day, the surge escalated into a jump due to fundamental news.
The USD/JPY currency exchange rate jumped 81 pips or 0.78%. The surge was caused by news from a public company.
Pfizer announced that its Covid-19 vaccine was effective in more than 90% of cases in a large scale study.
Economic Calendar
On Thursday, at 13:30 GMT USD pairs could move because of the release of the US Consumer Price Index and the Unemployment Claims. The rate could move up to 10 pips on the announcement.
On Friday, the US Producer Price Index are scheduled to be released at 13:30 GMT. The USD/JPY has moved from 4.7 to 14.8 pips during the release of the PPI.
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
The fundamental jump helped the rate pass the resistance of the 100 and 200-hour simple moving averages. However, the 104.50 level provided the rate with psychological resistance.In the near term future, if the pair passes the 104.50 mark, it would aim at the weekly R1 simple pivot point at the 104.79 level.
On the other hand, the rate could consolidate by trading sideways below 104.50 in the aftermath of the sudden surge.
Hourly Chart
On the daily candle chart, the rate is retracing back up after breaking out from a triangle pattern.
Meanwhile, note that the pair could find additional resistance in the 55-day simple moving average, which provided the pair with resistance since July.
Daily chart
On Monday, traders of the Swiss Foreign Exchange were bullish, as 62% of all open position volume was in long positions. At the middle of Friday's GMT trading hours, the sentiment was 65% long.
It appears that a minor part of traders took profits. However, a majority kept their long positions open.
In the meantime, trader set up pending orders in the 100-pip range around the rate were 82% to sell the pair.