USD/JPY starts to decline

Source: Dukascopy Bank SA
The USD/JPY pair has booked a lower low and lower high level. Namely, the low is at 148.25 and the high is at the combination of the weekly simple pivot point and the 50-hour simple moving average at 149.08. By late Thursday's trading, the pair was set to once again reach the 148.25 level.

Economic Calendar



On Friday, the top event of the week will take place. The United States will publish the monthly employment data at 12:30 GMT. The release will consist of the Average Hourly Earnings, Non-farm Employment Change and the Unemployment Rate.

Hourly Chart
A move below the 148.25 level could look for support in the 148.00 level and the combination of the the weekly S2 simple pivot point at 147.58 and the 147.50 mark. Below these levels note the Tuesday's drop low level at 147.28. This level could once again act as support.

On the other hand, a sudden resumption of the broader surge of the Dollar against the Japanese Yen would have to break the combined resistance of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point in the 148.90/149.30 range. Above the range, the 149.50 level could slow down a surge, before the pair tests the combination of the weekly R1 simple pivot point at 149.96 and the 150.00 mark.

USD/JPY daily chart's review

On the daily candle chart, the rate passed below the lower trend line of the channel up pattern which captures the recent month surge. However, it appears that the 1998 high level has acted as support.

In addition, note the approaching 50 and 100-day simple moving averages that are located near 146.50 and 144.30.

Daily chart



Traders are closing short positions

On Tuesday, traders were bearish on USD/JPY, as 74% of open positions on the Swiss Foreign Exchange were short.

In the meantime, trader pending orders in the 100-point range around the current exchange rate were 59% to buy.

By mid-Wednesday, positions were 72% short and orders were 52% to buy.

On Thursday, traders were 69% short and orders were 63% to buy. Not only traders are closing positions, but are ready to close more and open long positions.

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