After making attempts to pass the August high levels near 110.20, the USD/JPY currency exchange rate retreated on Friday. On Monday, the rate traded below the resistance of three hourly simple moving average and the weekly simple pivot point at 109.86.
Economic Calendar
This week, the rate could be impacted by the release of the US ISM Manufacturing Purchasing Managers Index release on Wednesday at 14:00 GMT.
The top day for fundamental event watchers will be Friday. On Friday, at 12:30 GMT the US will release the country's monthly employment data. Later on, at 14:00 GMT, the US ISM Services Purchasing Managers Index is set to be out.
Most impact is expected from the US employment data release. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
USD/JPY short-term review
In the case that the 55 and 100-hourly simple moving averages decline, the USD could lose value against the Japanese Yen. A move downwards would most likely look for support in the support zone at 109.42/109.50.However, a recovery of the rate would have to pass the resistance of the weekly simple pivot point at 109.86, the 200-hour simple moving average at 109.85. Afterwards, the 100-hour SMA at 109.91 and the 55-hour SMA at 109.98 could provide resistance.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the currency exchange rate is bouncing around between the support of the 100-day simple moving average at 109.67 and the 55-day simple moving average at 110.15.Meanwhile, the rate remains in the borders of a channel down pattern. In the case of the channel holding, the USD/JPY pair could continue to trend downward.
Daily chart
On Monday, traders on the Swiss Foreign Exchange were 69% short on USD/JPY.
On Friday, the sentiment was 61% bearish.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 57% to sell.