The USD/JPY currency exchange rate began the week with a sharp surge, which confirmed the borders of a wide channel up pattern. Afterwards, a decline started, which reached the hourly simple moving averages.
In the meantime, the rate was supported by the weekly simple pivot point at 107.05.
Economic Calendar
There are only couple data releases expected, which could move the USD/JPY pair.
On Thursday, the US Unemployment Claims data is set to be published at 12:30 GMT.
On Friday, the US Manufacturing and Services PMIs survey results are going to be released at 13:45 GMT.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
During last week, the USD/JPY currency pair revealed a short-term ascending channel. During Monday morning, the pair tested the upper channel line circa 107.50.It is likely that the exchange rate could gain support from the 55-, 100– and 200-hour SMAs in the 107.10 area. Thus, a reversal north could occur, and the rate could re-test the upper channel line.
Meanwhile, it is unlikely that a breakout north could as the currency pair could face the resistance level formed by the weekly R1 at 107.43. Thus, it is likely that the pair could consolidate.
Hourly Chart
On the daily candle chart, the rate trades below the additional resistance of the 55- and 100-day simple moving averages that are located in the 107.50 area.
Daily chart
On Monday, on the Swiss Foreign Exchange 60% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 50% of orders were to buy and sell.