The retreat of the USD/JPY reached the support of the 104.00 level. This level provided enough support for the pair to do a short term retracement back up to the 104.40 level, which beat it down.
At mid-day on Thursday, the currency exchange rate was expected to test the support of the 104.00 again.
Economic Calendar
On Thursday, expect the weekly US Unemployment Claims to cause a minor move at 13:30 GMT. Throughout October, the event has caused USD/JPY moves from 2.9 to 8.5.
Later in the day, at 19:00 GMT, the US Federal Reserve will make a Rate Statement. Namely, the bank will react to the US Election and the following market reaction. Previously, the Fed had stated that they intend to stop a market crash, if one starts due to the election results.
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
The currency exchange rate has moved from 10.4 to 48.7 pips on the announcement since June.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
Given that the exchange rate is pressured by the 55-, 100– and 200-hour SMAs, as well the weekly PP circa 104.60, it is likely that some downside potential could prevail in the market. The rate could decline below the psychological level at 104.00.In the meantime, the currency pair could gain support from the 104.00. Therefore, a reversal north could occur, and the pair could re-test the predetermined resistance.
Hourly Chart
On the daily candle chart, the rate remains in the orders of a large scale descending triangle pattern. The pattern's support is the 104.00/104.20 zone.
If the rate breaks out of the triangle, in theory a sharp move should follow. A possible target for a sharp drop would be the coronavirus caused low zone of 101.20/102.00.
Daily chart
On Thursday, traders of the Swiss Foreign Exchange were bullish, as 59% of all open position volume was in long positions.
At the middle of Wednesday's GMT trading hours, the sentiment was 56% long.
In the meantime, trader set up pending orders in the 100-pip range around the rate were 56% to buy the pair.