At mid-day on Friday the USD/JPY currency exchange rate was testing the resistance of the weekly R3 simple pivot point at 104.94. In the meantime, it was spotted throughout the week that the USD/JPY respected as resistances and support levels the simple weekly pivot points.
In the meantime, note that the 105.00 level could provide psychological resistance and the 23.60% Fibo at 105.03 strengthens it.
Economic Calendar
Next week, on Monday, the US ISM Manufacturing PMI at 15:00 GMT could cause a move. The USD/JPY has moved from 5.5 to 27.7 base points on the publication since September.
On Wednesday, the US ISM Non-Manufacturing PMI could cause a move from 6.1 to 16.0 pips.
Thursday will bring the usual weekly US Unemployment Claims at 13:30 GMT. The data has caused moves from 3.6 to 10.4 pips.
The week will end with the US monthly employment data sets at 13:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and Non-farm Employment Change will be published. The USD/JPY has moved 10.4 to 26.3 pips since September.
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
It is likely that the exchange rate could bounce off the resistance formed by the weekly R3 and the Fibo 23.60% in the 105.00 area. Note that the rate could face the support provided by the weekly R2 at 104.51.If the predetermined support holds, the currency pair could trade sideways within the following trading session. Otherwise, the pair could decline to the weekly R1 at 104.18.
Hourly Chart
On the daily candle chart, the rate has broken the channel down pattern, which guided it since June. This signals an end of a half a year trend.
In addition, the rate broke the resistance of the 100-day simple moving average at 104.40.
Daily chart
On Friday, on the Swiss Foreign Exchange 51% of open position volume was in long positions.
On Thursday, 55% of volume was long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 64% to sell.