The USD/JPY passed through the support of the weekly R1 at the 110.51 mark. On Friday morning, the 200-hour simple moving average supports the currency exchange rate to trade at 110.38 mark.
In general, the surge could continue as high as the 111.20 level.
The Bureau of Labor Statistics released Non-Farm Employment Change data better-than-expected of 304K compared to forecast 165K. Note, that the Average Hourly Earnings and the Unemployment Rate were released at the same time with the Non-Farm Employment Change.
The U.S. Bureau of Labor Statistics reported on Friday: "The labor force participation rate, at 63.2 percent, and the employment-population ratio, at 60.7 percent, changed little over the month; both measures were up by 0.5 percentage point over the year."
US data releases will affect the USD/JPY
This week will be busy for macroeconomic data releases. With the exception of Tuesday, on each day there is a notable data release.On Tuesday the heads of Bank of England and the US Federal Reserve spoke publicly. UK's Governor Carney spoke at 13:00 GMT and the head of the Federal Reserve Jerome Powell spoke at 17:45 GMT.
On Wednesday, at 09:30 GMT the UK CPI will be released. Later on at 13:30 GMT the US CPI and Core CPI will be released.
On Thursday, at 13:30 GMT the US Retail Sales and Core Retail Sales data will be published. In addition, at the same time the US Producers Price Index will be released.
The week will be closed by a UK data release. Namely, the UK Retail Sales data will be published at 09:30 GMT.
All of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more information watch the weekly Calendar Analysis stream recording.
USD/JPY short term daily review
During the previous trading session, the USD/JPY passed through the support level of the weekly R1 at 110.51. On Friday morning, the 200-hour simple moving average supported the rate to push it to trade at the 110.38 mark.In regards to the near-term future, it is expected that the currency exchange rate will trade sideways to stay at the 110.20 level during the day.
However, the 200-hour simple moving average could give additional support to the rate to break the resistance of the weekly R1 to trade at the 110.60 level.
Hourly Chart
On the daily chart the USD/JPY has finally reached the simple moving averages.On Tuesday the pair touched the 55-day simple moving average, which was located at the time at 110.60.
Meanwhile, note that the 100-day SMA was located far above the rate at 111.70, and the 200-day SMA was at 111.24.
Daily chart
On Friday, USD/JPY traders on the Swiss Foreign Exchange were short. The sentiment had become 62% short.
Meanwhile, 52% of trader orders for the USD/JPY were set to sell.