On Monday, the USD/JPY currency exchange rate suddenly surged, as another coronavirus vaccine was announced. This time AstraZeneca stated that its vaccine was around 90% effective.
This event caused a surge of the rate, which passed the 104.25 level. During the surge, the resistance of the 55 and 100-hour SMAs together with the weekly pivot point were broken.
Economic Calendar
On Monday, the US PMIs are set to be released at 14:45 GMT. Previously, the event did not cause adjustments in the USD value. However, in the most recent past the situation has changed.
Another day to watch the Economic calendars will be Wednesday. At 12:30 GMT the usual US weekly Unemployment Claims are set to grab the attention of the financial media despite the event not moving the markets. At the same time, the US Preliminary GDP is set to be published. This event also, despite being on the headlines, has not caused notable market moves.
At 19:00 GMT, the US FOMC Meeting Minutes are scheduled to be published. Do not expect an immediate reaction of the markets, as the Meeting Minutes is not a statistics number, but a pdf document that contains clues on the future of the US monetary policy.
Its impact is gradual, as various market participants make their trades based upon how they interpret the information in the document. Quite often, the same text or even word is interpreted differently by various market participants. What matters is whether bullish or bearish views dominate after the publication.
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
As the rate has pierced the resistance of the weekly pivot point, it should aim at the 200-hour simple moving average, which was located at the 104.42 level. If the SMA manages to keep the rate down, the rate would most likely trade sideways.On the other hand, if the SMA fails to keep the rate down, USD/JPY could reach for the resistance of the weekly R1 simple pivot points at 104.80.
Hourly Chart
On the daily candle chart, the recent surge of the pair has not recovered much, as the rate has just returned to Wednesday's levels. Previously, the rate had experienced six consecutive sessions of declining.
The decline was caused by the resistance of the descending trend line, which has kept the rate down since July.
Daily chart
On Monday, on the Swiss Foreign Exchange 63% of volume was in long positions.
By the middle of Friday's GMT trading hours, the sentiment was 61% long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 61% to buy the pair.