Since December 30, the resistance of the 103.35 level held. In the meantime, the rate was supported by the 103.00 mark. On January 4, the rate passed below the 103.00 mark.
In the near term future, the rate was expected to continue to decline.
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 releases 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
During today's morning hours, the USD/JPY currency pair declined below the weekly S1 at 102.88.Given that the exchange rate is pressured by the 55-hour SMA near 103.15, it is likely that bears could continue to prevail in the market in the short term. Note that the rate could gain support from the weekly S2 at 102.45.
In the meantime, it is unlikely that bulls could prevail in the market, and the currency pair could exceed the resistance formed by the 100– and 200-hour SMAs, as well the weekly PP in the 103.40 area.
Hourly Chart
On the daily candle chart, Dukascopy Analytics has marked the zone of the November and December low levels. The Monday's decline managed to pierce this support zone.
Daily chart
Since the previous Monday, on the Swiss Foreign Exchange around 70% of volume was in long positions. Traders did not close their longs during the recent drop.
This Monday, the sentiment was 73% long. It could have changed due to short term traders closing short positions by taking profits.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 73% to sell.