Although, the pivot point managed to hold and the rate retraced back up to the levels just below the 107.00 mark, where it traded sideways on Friday.
US ISM Non-Manufacturing PMI
The Institute for Supply Management released the US ISM Non-Manufacturing PMI survey data results, which came out worse-than-expected of 52.6 compared to the forecast of 55.1.
The Chair of the Institute for Supply Management (ISM) Non-Manufacturing Business Survey Committee Anthony Nieves commented: "The non-manufacturing sector pulled back after reflecting strong growth in August. The respondents are mostly concerned about tariffs, labor resources and the direction of the economy."
Economic Calendar
The Average Hourly Earnings is the top number to watch. It is closely followed in importance by the Non-Farm Employment change. Meanwhile, the Unemployment Rate can be ignored by financial traders.
The event has caused moves from 13.4 to 38.9 pips since May 2019.
Meanwhile, next week's notable event overview and historical data tables have been published. Click on the link below to see the article with the data.
USD/JPY short-term daily review
On Friday morning, the rate was consolidating after the sharp decline. In general, it was expected to resume the decline as soon as the oversold pressure is gone.The removal of the oversold pressure would be signalled by the approach of the 55-hour simple moving average, which during the morning London trading hours was located near the 107.15 level.
On the other hand, instead of waiting for the moving resistance level, the pair could surge up to the 107.00 mark where a 23.60% Fibonacci retracement level was located at.
Hourly Chart
On the daily candle chart, the channel up pattern has been broken. The rate has clearly went away from it and the surge that was going one since late September is over.
Meanwhile, take into account that the 55-day simple moving average was also pierced, indicating that is not likely to impact the currency exchange rate in the near term future.
Daily chart
Since Thursday, 57% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were neutral. Namely, in the 100-pip range 51% of pending orders were set to buy and 49% were to sell.
Previously, 61% of orders were to buy.