USD/JPY tests high level zone

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The USD/JPY surged to the November 28 high level zone near the 114.00 mark on Wednesday. The resistance zone was strong enough to cause a decline. By the middle of Thursday's trading, the pair had returned to the support of the 200-hour SMA. Meanwhile, additional support had approached the rate in the form of the 100-hour simple moving average.

Economic Calendar



On Thursday, a minor USD move could occur due to the weekly US Unemployment claims release at 13:30 GMT. The USD/JPY has moved from 4.7 to 28.5 pips on the releases since November 4.

On Friday, the value of the US Dollar is most likely going to adjust to the publication of the US Consumer Price Index and Core Consumer Price Index changes at 13:30 GMT. The rate has moved 19.1 to 30.4 pips due to the release since July 2021.

Click on the link below to find out more about data releases of this and other currency exchange rates.

USD/JPY short-term review

A surge of the USD/JPY would highly likely once again test the resistance of the high level zone at 113.88/113.97. However, take into account that the 50-hour simple moving average near 113.60 and the weekly R1 simple pivot point at 113.69 might slow down a move of the US Dollar higher against the Japanese Yen.

Meanwhile, in the case of a decline below the 100 and 200-hour simple moving averages, the rate could reach the support of the weekly simple pivot point at 113.11. Below the pivot point, note the 112.60 level and the zone that surrounds it.

Hourly Chart

USD/JPY daily chart's review

The USD/JPY passed the support of the 50-day simple moving average. Further support could be provided by the 2019 and 2020 high level zone, which was broken in October.

However, a proper recovery from the 112.60 mark might serve as a basis for an adjustment of the zone's borders. Namely, the 2019 and 2020 high level zone would be adjusted to include the 112.60 level.

Daily chart




Traders are short on USD/JPY

On Thursday, on the Swiss Foreign Exchange, traders were short, as 74% of open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to buy.

On Wednesday, the positions were 71% short and orders were 52% to buy.

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