USD/JPY traded sideways on Monday, as it made attempts to pass the resistance of the 111.50 level.
The rate was expected to trade sideways until additional technical resistance levels approach it and force it into a retreat.
The Bureau of Labor Statistics released the US Non-Farm Employment Change, which came better-than-expected of 196K compared with forecasted 172K. Note, that the US Average Hourly Earnings and the Unemployment Rate were released at the same time.
On March, the US economy generated more jobs than expected, and the confidence in the state of labor market strengthened. Also, the slowdown in wage inflation supported the Fed's resolution to lessen further policy tightening.
Busy Wednesday
This week data releases are set to start on Wednesday. On that day the calendar is full of events that have impacted various currencies in the past.During the morning hours of the day the UK GDP and Manufacturing Production are expected to cause an impact on the GBP currency pairs. The data release is scheduled to occur at 08:30 GMT.
At 11:45 GMT all attention will be given to the ECB. At that time the ECB Main Refinancing Rate and Monetary Policy Statement will be published.
Although, note that these European Central Bank announcements do not create the moves on the EUR pairs. They are caused by the ECB Press Conference, during which the President of the ECB reveals new information by answering questions. The press conference starts at 12:30 GMT.
Meanwhile, exactly at 12:30 GMT USD pairs will be impacted by the publication of the US Consumer Price Index data. This can cause a move of up to 20 pips on USD pairs.
Wednesday will end with an above all fundamental event. The Federal Reserve Federal Open Market Committee will publish their Meeting Minutes.
In the publication the Fed will officially announced their future plans for US monetary policy.
That will be all on Wednesday. On Thursday, the week's events will end with the US Producers Price Index publication at 12:30 GMT. This event on average causes moves around 10 base points.
All of these events will be covered by Dukascopy Analytics. The covers of these events and the weekly economic calendar review can be watched on the Dukascopy Webinars channel.
USD/JPY short term daily review
During Friday's trading session, the currency exchange rate was supported by the 55-hour simple moving average after which, the rate slumped to the 111.40 level. On Monday morning, the rate resisted by the 100-hour SMA to be located at the 111.50 mark.In regards to the near-term future, the rate will break the weekly pivot point at 111.46 mark to trade sideways at the 111.50 level.
However, the resistance levels of the 55-hour and the 100-hour simple moving averages could retrace the rate to push it to depreciate to the bottom boundary of the trend line at the 111.20 level.
Hourly Chart
On the daily chart it can be observed that the rate has broken the resistance of the 200-day SMA. The simple moving average was now expected to provide support to the currency rate at 111.50.Daily chart
On Monday, traders were still short on the USD/JPY, as 66% of total open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were slightly bullish. 54% of orders were set to buy.