The USD/JPY has broken the channel down pattern. Namely, the squeeze between the upper trend line of the pattern and the 50.00% Fibonacci retracement level at 108.35 ended with a break-out to the upside.
By the middle of Friday's trading, the rate was reaching for the weekly R1 at 109.23.
Economic Calendar
On Tuesday, at 12:30 GMT expect the US Retail Sales and Core Retail Sales data. This publication could cause a move on the USD/JPY from 5.3 to 16.7 base points, as it has done since October 16, 2020.
On Wednesday, the US Federal Reserve is set to publish a FOMC Statement at 18:00 GMT and announce the Federal Funds Rate. This event is bound to set the tone for the whole global monetary policy. The USD/JPY has moved from 7.8 to 26.6 base points since November 5, 2020 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 weekly R1 simple pivot point holds, the rate could trade sideways until it is approached and pushed up by the combination of the hourly simple pivot points. However, note that this is a weekly pivot point. It is bound to move to another level at the start of the next week.On the other hand, the rate could pass the pivot point on Friday and reach for the resistance of the 109.83 level, where the 61.80% Fibonacci retracement level was located at.
Hourly Chart
On the daily candle chart, the rate could eventually reach the 61.80% Fibonacci retracement level at the 109.83 level. This retracement level stopped the rate's early June's sharp recovery and forced the USD/JPY into continuing its large scale decline.
Daily chart
Since Thursday, traders were 73% short on USD/JPY. The Swiss Foreign Exchange open positions have been mostly short for more than two weeks.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 51% to sell.