On Monday, the USD/JPY was approaching the resistance of the 105.00 level, which was expected to provide resistance. The 105.00 level could provide psychological resistance and the 23.60% Fibo at 105.03 strengthens it.
Economic Calendar
On Monday, the US ISM Manufacturing PMI at 15:00 GMT could cause a move. The USD/JPY has moved from 5.5 to 27.7 base points on the publication since September.
On Wednesday, the US ISM Non-Manufacturing PMI could cause a move from 6.1 to 16.0 pips.
Thursday will bring the usual weekly US Unemployment Claims at 13:30 GMT. The data has caused moves from 3.6 to 10.4 pips.
The week will end with the US monthly employment data sets at 13:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and Non-farm Employment Change will be published. The USD/JPY has moved 10.4 to 26.3 pips since September.
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 face the resistance level—the Fibo 23.60% at 105.03. Thus, the rate could bounce off to the support area provided by the 55– and 100-hour SMAs, as well the weekly PP in the 104.24/104.55 range.If the predetermined resistance level does not hold, the currency pair could continue to extend gains in the short term. Note that the pair would have to surpass the weekly R1 at 105.28.
Hourly Chart
On the daily candle chart, the rate has broken the channel down pattern, which guided it since June. This signals an end of a half a year trend.
In addition, the rate broke the resistance of the 100-day simple moving average at 104.40.
Daily chart
On Friday, on the Swiss Foreign Exchange 51% of open position volume was in long positions.
On Monday, 51% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 61% to sell.