The USD/JPY was jumping on Monday. The rate had finally managed to pass the resistance of the 110.00 level.
By the middle of the day's trading it could be observed that the rate was heading for the 110.50 level, where starting from Monday the weekly R2 of the simple pivot points was located at.
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."
US data releases will affect the USD/JPY
This week will be busy for macroeconomic data releases. With the exception of Tuesday, on each day there is a notable data release.However, take into account that on Tuesday the heads of Bank of England and the US Federal Reserve will speak publicly. UK's Governor Carney will speak at 13:00 GMT and the head of the Federal Reserve Jerome Powell is set to speak at 17:45 GMT.
On Wednesday, at 09:30 GMT the UK CPI will be released. Later on at 13:30 GMT the US CPI and Core CPI will be released.
On Thursday, at 13:30 GMT the US Retail Sales and Core Retail Sales data will be published. In addition, at the same time the US Producers Price Index will be released.
The week will be closed by a UK data release. Namely, the UK Retail Sales data will be published at 09:30 GMT.
All 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.
USD/JPY short term daily review
The US Dollar broke a significant level of resistance against the Japanese Yen. Namely, the resistance of a medium descending pattern that captured the week long sideways trading below the 110.00 level was broken. The event signals the end of sideways trading.As the pair continues to surge upwards, it will face the weekly R1 at 110.14. After breaking the weekly R1, the pair is set to reach for the next resistance level at the 110.50 mark.
On the other hand, at any moment the pair might begin to consolidate its gains by trading sideways and waiting for the support of the 55 and 100-hour simple moving averages to approach the rate and initiate a continuation of the surge.
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
USD/JPY traders on the Swiss Foreign Exchange remained long. Namely, 56% of open position volume was in long positions.
Meanwhile, trader set up pending orders - stop losses, take profits and position open orders in the 100-pip range were neutral. 51% of orders were set to sell in that range.
Instead of waiting for buy signals traders had opened long positions already on Friday. They were gaining profits on Monday.