As the run to safety ended on Monday, the USD/JPY began to surge due to the Japanese Yen being sold off.
By the middle of Tuesday's European trading hours, the currency exchange rate had broken various resistance levels and reached above the 109.00 level.
On some calendars, on Wednesday, the ADP Non-Farm Employment Change is shown as a high impact data set. Note that our analysts ignore it, as, for example, on the USD/JPY charts it has caused moves from 3.2 to 19.0 pips since September.
On the same day, the US ISM Non-Manufacturing PMI is scheduled to be released at 15:00 GMT. This event has caused moves from 18.8 to 56.6 pips.
Last but not least, US employment data sets are scheduled to be published on Friday at 13:30 GMT. Moves from 19.5 to 49.8 pips have been caused by this event since September 2019.
The week's event historical data tables have been published. Click on the headline below to read the article.
Read More: 03.02.-07.02 Event Historical Reactions
USD/JPY short-term daily review
During Tuesday's morning trading hours, the currency exchange rate passed the resistance levels from 108.65 to 109.00. Due to the surge the rate had no technical resistance as high as 109.60. At that level a 50.00% Fibonacci retracement level together with a pivot point are located at.In theory, the rate should surge up to these levels. However, due to the recent sharp surge the rate first could consolidate by trading sideways above the 109.00 level.
Hourly Chart
On the daily candle chart, the rate faces the resistance of the 55-day simple moving average, which is keeping the rate below the 109.15 level. This level needs to be passed before reaching for the 109.60 level.
Daily chart
Read More: Technical Analysis
Traders are short on USD/JPY
On Tuesday, 69% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 67% of pending orders were to sell and 33% were to buy.