USD/JPY shows signs of resuming the surge

Note: This section contains information in English only.
Source: Dukascopy Bank SA
In general, the pair is still near 157.00. However, a new hihg was booked at midnight to Wednesday at 157.40. In the meantime, during the morning hours of the day, the pair confimred that the 50 and 100-hour simple moving averages are acting as support.

Economic Calendar



On Thursday, at 12:30 GMT the publication of the United States Preliminary GDP and Unemployment Claims could impact the market via a move of the USD.

On Friday, the top event of the week will take place, as at 12:30 GMT the US Core Personal Consumption Expenditure Index monthly change will be published. If the data shows that inflation is not decreasing, the US Dollar is bound to surge. Higher than expected inflation is set to pressure the US Federal Reserve to hike the Dollar's base interest rate.

USD/JPY hourly chart analysis

A resumption of the prior surge of the Dollar against the Yen is set to face the 157.50 level and the weekly R1 simple pivot point at 157.59. Higher above resistance could be found in the 158.00 level and the weekly R2 simple pivot point at 158.24.

If the rate declines, it has to first pass the 50 and 100-hour simple moving averages and the 157.00 level. Below these levels, the weekly simple pivot point and the 200-hour simple moving average are acting as support together with the 156.50 level.

Hourly Chart

USD/JPY daily chart's review

On the daily candle chart, the pair is being pushed up by the 50-day simple moving average. It has acted as support two times in combination with a round and notable exchange rate level. The SMA could push the pair into the prior high of 160.00 unless the Bank of Japan intervenes once again.
Daily chart



Traders are riding the recovery

Last week, on Monday, traders were long, as 74% of volume was in bullish positions. This Monday, positions were 75% long.

On Wednesday, some traders had taken profits, as 73% of volume was long. Meanwhile, pending orders were 57% to buy. New positions could be opened by traders, if the surge accelerates.

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