As forecast, the USD/JPY surged due to the additional support of the 55 and 200-hour simple moving averages. Namely, the rate surged as soon as the 55-hour SMA reached the rate.
This resulted in a surge, which on Wednesday tested the resistance of the weekly R1 simple pivot point at 107.72 and the 104.75 high level of November 24.
Economic Calendar
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings. The rate has moved from 10.4 to 26.3 pips on the announcement.
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
If the given resistance levels hold, it is likely that a reversal south could follow and the exchange rate could target the support provided by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 104.20 area.Otherwise, the currency pair could continue to trade upwards in the short term. In this case the pair could face the resistance level—the Fibo 23.60% at 105.03.
Hourly Chart
On the daily candle chart, one can observe that the rate faces the additional resistance of the 55-day simple moving average, which was located at the 104.84 level.
Daily chart
On Wednesday, on the Swiss Foreign Exchange 64% of volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 78% to sell the pair.