The 103.70 level provided the USD/JPY rate with resistance up to mid-day on Tuesday. Afterwards, the rate began a sharp decline, which on Wednesday reached the support of the 103.00 mark.
The 103.00 level provided the rate with support, which caused a recovery, which almost immediately reached the resistance of the 103.35 level.
Economic Calendar
The first week of the year is bound to have notable data releases. The top among them are the release of the US Federal Open Markets Committee Meeting Minutes and the US monthly employment data sets.
On Tuesday, at 15:00 GMT, a minor move could be caused by the release of the US ISM Manufacturing PMI. The USD/JPY has moved 5.5 to 27.7 pips on the announcement since August.
On Wednesday, the mentioned FOMC Meeting Minutes are set to be released at 19:00 GMT. Expect a minor move from 3.7 to 7.3 pips. Note that there was an anomaly of 10.5 pips in August.
On Thursday, at 13:30 GMT, the US Unemployment Claims could cause a minor move on USD pairs and assets. In addition, on the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI results will be published.
The release have caused moves, respectively, from 5.6 to 8.7 and 6.1 to 16.0 base points.
The week will end with the release of three US employment data sets. The releases will occur on Friday at 13:30 GMT. This event has caused moves from 10.4 to 26.3 pips since August.
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
After plummeting to the support of the 103.00 level, the rate began a recovery, which immediately found resistance in the 103.35 level. This level has been impacting the rate since December 24.If the rate passes this resistance level, the pair would aim at the combined resistance of the 55, 100 and 200-hour simple moving averages and the weekly simple pivot point at 103.58. In the case of these levels failing to provide resistance, the previous high of 103.90 could be eventually reached.
On the other hand, if the 103.35 holds, the USD/JPY could decline to the support of the 103.00 level. The failing of the 103.00 mark to provide support could result in the rate reaching for the support of the weekly S3 simple pivot point at 102.63.
Hourly Chart
On the daily candle chart, Dukascopy Analytics has marked the zone of the November and December low levels. These low levels are most likely going to provide support to the currency exchange rate.
Daily chart
Since Monday, on the Swiss Foreign Exchange around 70% of volume was in long positions. Traders did not close their longs during the recent drop.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 65-70% to sell.