USD/JPY ends decline and breaks pattern

Source: Dukascopy Bank SA
On Tuesday afternoon, the USD/JPY currency rate ended trading between 130.50 and 131.00 with a surge. During Wednesday's early trading hours, the pair was fluctuating between the 132.50 and 134.00 levels.

Economic Calendar



On Wednesday, the US ISM Services PMI at 14:00 GMT might impact the pair through the value of the US Dollar.

On Friday, one of the top events of the month will take place. At 12:30 GMT, the US employment data sets are scheduled to be released. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.

Hourly Chart
A potential decline of the currency pair might look for support in the 132.00 mark and the 50-hour simple moving average at that level. Further below, note the weekly S1 simple pivot point at 131.32.

However, an extended recovery of the US Dollar against the Japanese Yen could face resistance in the 134.00 mark, the weekly simple pivot point at 134.39 and the combination of the 134.50 mark and the 200-hour simple moving average.

USD/JPY daily chart's review

On the daily candle chart, the rate has shortly reached below the combination of a high and low level zone at 131.25/132.00 and the 100-day simple moving average. Further below, note the May low level range at 126.40/126.95.

Daily chart




Traders are short

At the start of this week, on the Swiss Foreign Exchange, traders were 72% 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 64% to sell the USD against the JPY.

On Wednesday, open positions were 72% short and pending orders were 63% to buy.

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