On Friday morning, the rate fluctuated around the 127.00 level, as support and resistance was being provided by round exchange rate levels. It appeared that the pair was still looking for direction in the aftermath of the comments made by Haruhiko Kuroda.
Economic Calendar
This week's notable events are over. Next week, the markets are set to concentrate on US Manufacturing PMI on Wednesday and employment data on Friday.
Hourly Chart
If the US Dollar surges against the Japanese Yen, the rate would have to pass the 50 and 100-hour simple moving averages at 127.10 and 127.25. Higher above, note the Tuesday's high level zone at 127.50/127.60. Above the high level zone, the 200-hour simple moving average and the trend line, which connects the May high levels, are expected to act as resistance.
On the other hand a decline of the USD/JPY might look for support in the 126.35/126.60 range, which has kept the rate up during this week. Below the support zone note the 126.00 and 126.50 levels and the weekly S2 simple pivot point at 125.44.
USD/JPY daily chart's review
On the daily candle chart, the pair has pierced the combined support of the 126.90/127.55 zone and the 50-day simple moving average. The pair could start a broader decline and look for support in the various 2015 high levels.Daily chart
Since Wednesday, on the Swiss Foreign Exchange, traders were 63% short as that amount of open position volume was in short positions.
Meanwhile, on Friday, trader set up pending orders in the 100-pip range around the rate were 64% to sell the USD against the JPY.
On Thursday, the orders were 51% to buy.