The USD/JPY has started the year with a recovery from previous losses. However, it was not expected to last long, as the rate was set to face strong technical resistance levels.
Economic Calendar On Friday, January 3, the ISM Manufacturing PMI survey results will be released at 15:00 GMT.At the same day, the FOMC Meeting Minutes data will be published at 19:00 GMT.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 30.12-03.01 Event Historical Reactions
USD/JPY short-term daily review
The USD/JPY started a recovery at the end of the year. By middle of Thursday's trading, the recovery had reached above the resistance of the 55-hour simple moving average near 108.80.If the 55-hour SMA fails to keep the rate down, the pair in theory should reach for the resistance of the monthly pivot point at 108.95. Take into account that the monthly was strengthened by the S3 weekly pivot point.
On the other hand, if the rate resumes its decline, it would aim at the support of a 38.20% Fibonacci retracement level at 108.44.
Hourly Chart
On the daily candle chart, the pair has plummeted after testing the resistance of a 50.00% Fibonacci retracement level at 109.60. The resulting decline was stopped by the 200-day SAM near 108.70.
In regards to the future, the pair was expected to eventually reach the support of the 38.20% Fibonacci retracement level near 108.40.
Daily chart
Read More: Technical Analysis
Traders remain short
On Thursday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were slightly bullish. In the 100-pip range 58% of pending orders were to buy and 42% were to sell.