The USD/JPY surged, as expected after the breaking of the resistance line on the hourly chart. Namely, the rate reached 108.90 at midnight.
At that level the rate met with the resistance of the weekly R2. If this technical level gets broken, the rate would surge up to the 109.32 level, where the weekly R2 is located at.
US Bureau of Labor Statistics released the US ISM Non-Farm Employment Change data, which came out better-than-expected of 244K compared with the forecast of 162K.
According to the official release: "Notable job gains occurred in professional and business services, in health care, and in transportation and warehousing."
Minor US data and Fed Meeting Minutes
This week the data that will impact the USD/JPY will come from the US. There are FOMC Meeting Minutes incoming and a couple of minor data releases.
The FOMC Meeting Minutes will come first, as they will be published at 18:00 GMT on Wednesday. The event has caused moves on the USD/JPY from 7.9 to 29.1 pips since November 2018.
On Thursday, the US CPI and Core CPI data will be published at 12:30 GMT. The data release has caused moves from 11.5 to 17.5 pips since February.
On Friday, the US Producers Price Index will be released at 12:30 GMT. The event has caused moves from 3.9 to 31.9 pips. Although, note that the 31.9 pip move was actually caused by other announcements being made at the same time as the PPI was published.
For more information watch this week's Economic Calendar Analysis
USD/JPY short-term daily review
The short term forecast for USD/JPY on Tuesday was based on the weekly R1 at 108.91.If this technical resistance level gets broken, the rate would be expected to surge up to the weekly R2 at 109.32.
On the other hand, the pair can become overbought and consolidate by trading sideways. This is hinted by the fact that it has left below it the hourly simple moving averages. Namely, it could wait for the 55-hour SMA, which on Tuesday was near 108.50, to catch up.
Hourly Chart
On the daily candle chart, the rate has broken a 38.20% Fibonacci retracement level at 108.43.
In general, the rate was heading to the resistance of the 55-day simple moving average, which on Monday was located at the 109.30 level.
Daily chart
By the middle of Tuesday's trading session, on the Swiss Foreign Exchange 74% of trader open USD/JPY position volume was in long positions. Previously, the sentiment was 71% long.
These traders were profiting during the last 24 hours.
Meanwhile, trader set up pending orders were neutral, as 51% of pending commands in the 100-pip range were set to buy and 49% were to sell.