After touching the 102.70 level on Monday, the USD/JPY currency exchange rate retraced to the 103.20 level, which provided resistance. The 103.20 held and caused a decline.
By the middle of Tuesday's European trading hours, the decline had reached the 102.80 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 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
It is likely that the exchange rate could remain under pressure of the 55– and 100-hour moving averages in the 103.10/103.20 range. Thus, the rate could tumble to the weekly S2 at 102.45.In the meantime, it is unlikely that bulls could prevail in the market in the short term and the currency pair could exceed the resistance provided by the weekly PP and the 200-hour SMA near 103.40.
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 Monday, on the Swiss Foreign Exchange around 73% of volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 54% to buy.