The USD/JPY has failed to pass the 110.00 mark for a week now. It continues to trade between 109.60 and 110.00. However, a move up is still expected.
The reason for the possible surge still upwards is technical. Namely, the support of the 200-hour simple moving average is approaching the currency exchange rate from the downside.
The Bureau of Labor Statistics released Non-Farm Employment Change data better-than-expected of 304K compared to forecast 165K. Note, that the Average Hourly Earnings and the Unemployment Rate were released at the same time with the Non-Farm Employment Change.
The U.S. Bureau of Labor Statistics reported on Friday: "The labor force participation rate, at 63.2 percent, and the employment-population ratio, at 60.7 percent, changed little over the month; both measures were up by 0.5 percentage point over the year."
No data relevant to the USD/JPY during the week
The Canadian Employment data release will occur today at 13:30 GMT.Meanwhile, take into account that at 09:30 GMT on Monday the UK GDP and Manufacturing Production will be published. It will occur before the weekly calendar analysis stream.
Both of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more detailed info and a chance to ask questions watch the weekly calendar analysis by clicking on the link below.
USD/JPY short term daily review
The forecast for the hourly chart remains the same for the USD/JPY. Watch the 55, 100 and 200-hour simple moving averages, as they provide at some moment resistance and at others support.In general, the 200-hour SMA might push the rate through the 110.00 level, as it approaches the rate and provides additional support.
However, with the same probability it can fail. In that case watch the SMAs closely for a sell or buy signal, when the rate passes the 110.00 or the 109.60 levels.
Hourly Chart
Another descending pattern on the daily chart has been broken. In general, it is not a surprise, as the rate has been breaking one declining pattern after another.It is due to the fact that the rate's fall previously was too sharp. The rate is heading to the daily simple moving averages, which are located at the 111.00 mark.
Meanwhile, watch the resistances near the 110.00, 110.50 and 111.00 levels. Around these levels there is likely going to be action.
Daily chart
Traders are no longer neutral, as by the middle of Friday's trading session the Swiss Foreign Exchange market sentiment was 55% long.
Meanwhile, trader set up pending orders - stop losses, take profits and position open orders in the 100-pip range were set to buy. 54% of orders were set to buy in that range.
Instead of waiting for buy signals in the form of breaking the 110.00 level, some traders have already opened long positions.