On Monday, the US Dollar managed to gain against the Japanese Yen. It pierced the resistance of the S1 monthly pivot point at 108.17 and reached for the 108.50 level.
At that level the rate was stopped by the weekly pivot point. Throughout the first half of European Tuesday's trading hours, the rate remained below the pivot point.
On Wednesday, the ADP Non-Farm Employment Change is scheduled to be released at 13:15 GMT. Dukascopy analytics dropped the cover of the ADP due to it not causing increases of volatility.
However, the last release caused a move on the EUR/USD above ten pips. It is the criteria whether to take or not take into account a data release.
The week will end with the three US employment data sets being published at 13:30 GMT. Since August 2019, the USD/JPY has moved from 26.7 to 49.8 pips on the release.
The week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 06.01-10.01 Event Historical Reactions
USD/JPY short-term daily review
On Monday, the USD/JPY currency pair raised to the resistance formed by the Fibo 38.20%, the weekly PP and the 100-hour SMA circa 108.50. During today's morning, the pair was testing the given resistanceIf the given resistance holds, it is likely that some downside potential could prevail in the market. In this case the exchange rate could gain support from the monthly S1 and the 55-hour SMA at 108.17.
If the given support holds, it is likely that the US Dollar could trade sideways against the Japanese Yen in the short term. Also, it is unlikely that bulls could prevail in the market, and the rate could exceed the monthly PP at 108.95.
Hourly Chart
Due to the recovery of the USD/JPY, the rate has surged above the 100-day simple moving average. This SMA is the only support of the pair before the weekly S1 pivot point at 107.49.
Daily chart
Read More: Technical Analysis
Traders remain short
On Monday. 61% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Tuesday's European trading, the sentiment was 54% short.
Since Monday, trader set up pending orders were majorly bearish. In the 100-pip range 81% of pending orders were to sell and 19% were to buy.