USD/JPY drops to 137.00

Source: Dukascopy Bank SA
On Thursday, the US Dollar failed to reach the resistance of the 139.00 mark. At mid-day, the pair started a decline, which by midnight had reached the 137.00 level. The 137.00 level acted as support and caused a surge.

During the early hours of Friday's trading, the pair had reached a cluster of resistance levels at 138.00. The cluster was made up of the weekly simple pivot point at 137.90, the 50, 100 and 200-hour simple moving averages in the 138.00/138.05 range.

Economic Calendar



On Friday, take into account the US Markit Services and Manufacturing Purchasing Managers Index release at 13:45 GMT. The rate might be impacted through the USD value reacting to the publication.

Hourly Chart
If the resistance levels at 138.00 hold, the pair might decline and once again look for support in the 137.00 level. Further below, note the early July high and low level zone near 136.50 and the weekly S1 simple pivot point at 136.42.

However, a move above the 138.00 mark might encounter minor resistance in the 138.50 level, prior to approaching the 139.00 level and the July high levels at 139.35/139.38.

USD/JPY daily chart's review

On the daily candle chart, the rate has resumed its 2022 surge, which appears to have been occurring in a wide channel up pattern.

Daily chart




Traders are shorting

On Friday, on the Swiss Foreign Exchange, traders were 68% short as that amount of open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 73% to sell the USD against the JPY.

On Thursday, the positions were 68% short and pending orders were 55% to buy.

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