The USD/JPY reached the June high level at 109.83 where a 61.80% Fibonacci retracement level is located at. The rate reached the target faster than forecast, as the pair broke the narrow channel up pattern, which had guided the rate before.
Afterwards, two attempts to pass the Fibonacci retracement level were made and both failed. By the middle of Monday's European trading, the rate had retraced down and found support in the previous March high levels and the 109.40 level.
Economic Calendar
On Wednesday, at 13:15 GMT, the US ADP Non-Farm Employment Change is set to be released. This event has caused USD/JPY moves from 3.9 to 13.3 pips since November.
On the same day, at 15:00 GMT the US ISM Manufacturing PMI is set to be scheduled. The rate has moved from 5.0 to 14.4 pips on the announcement.
The week will end on Friday with the top event, as the US Employment data is set to be released at 13:30 GMT. The event will consist of three data sets being released. Combined they have caused moves from 19.7 to 34.0 pips on the charts.
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
In the near term future, the rate was set to consolidate by trading sideways. Afterwards, the 55-hour simple moving average could provide additional support. The additional support might be enough for the USD/JPY to reach above the 109.83 level.On the other hand, a potential decline would have to pass the support of the SMA and the support zone of the prior March high level at 109.25/109.35.
Hourly Chart
On the daily candle chart, after a period of consolidation, the rate has resumed its surge. The June high level at 109.83, where the 61.80% Fibo was located at, should continue to provide resistance.
Daily chart
On Monday, traders were 73% short on USD/JPY. On Friday, the sentiment was 74% short.
The Swiss Foreign Exchange open positions have been mostly short for almost a month. It appears that traders expect a larger retracement back down.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 59% to buy.
Previously, 65% of orders were to sell.