USD/JPY breaks large scale pattern

Source: Dukascopy Bank SA
On Thursday, the US Dollar strengthened due to better than expected US Unemployment Claims and ADP Non-Farm Employment data. The following surge had reached the late December high level zone 134.50.

Economic Calendar



On Friday, The United States employment data release at 13:30 GMT is highly likely going to impact the US Dollar. Later on, at 15:00 GMT the ISM Services PMI is set to cause minor impact on the financial markets.

Hourly Chart
A move above the resistance zone could be slowed down by the 135.00 and 135.50 levels. Higher above, note the weekly R3 simple pivot point at 135.84.

On the other hand, a decline of the US Dollar against the Yen is expected to look for support in the 134.00, 133.50 and 133.00 levels and the weekly R1 simple pivot point at 133.46. All of these levels impacted the rate during late Thursday's trading.

USD/JPY daily chart's review

On the daily candle chart, the pair has broken the channel down pattern, which guided it down since reaching the October high level at 152.00. The event signals a major reversal of the currency pair.

Meanwhile, note that the 50 and 200-day simple moving averages might act as resistance near 137.00 and 138.00.
Daily chart



Traders are short

On Friday, on the Swiss Foreign Exchange, traders were 54% 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 50% to buy and sell the USD against the JPY.

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