On Thursday morning, the USD/JPY currency exchange rate approached and bounced off the combination of the upper trend line of the channel down pattern and the 100-hour simple moving average near 113.30.
By the start of the days US trading, the pair was approaching this week's low level zone at 112.53/112.65.
Economic Calendar
This week, the main event will be the release of the US employment data on Friday at 13:30 GMT. The release will consists of the publication of the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
The rate has moved from 25.4 to 33.4 pips on the employment release.
In addition, take into account the US ISM Services PMI survey results on Friday at 15:00 GMT. This event has caused moves from 8.5 to 35.4 base points.
Click on the link below to find out more about data releases of this and other currency exchange rates.
USD/JPY short-term review
In the case that the support zone holds, the USD/JPY could retrace back up to the resistance of the 100-hour simple moving average and the upper trend line of the channel down pattern. However, it would be unclear, at which level the rate could meet the mentioned levels, as they are descending.Meanwhile, a decline below the support zone at 112.53/112.65 could immediately find additional support. The 112.50 mark and the weekly S1 simple pivot point at 112.53 are expected to act as support. Although, there are no additional technical support levels as low as 111.54. Due to that reason, the 112.00 might be the only potential support level below 112.50.
Hourly Chart
USD/JPY daily chart's review
The USD/JPY passed the support of the 50-day simple moving average. Further support could be provided by the 2019 and 2020 high level zone, which was broken in October.Daily chart
Since Monday, on the Swiss Foreign Exchange, traders were short, as 74% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 55% to buy.
Since Wednesday, the positions were 73% short and orders were 52-56% to buy.