During Tuesday's trading session the USD/JPY was making attempts to pass the technical resistance levels at 111.40.
Due to the fact that the rate had touched the upper trend line of an ascending channel pattern, it was expected that it will trade sideways until it gets additional technical support from the 55-hour SMA and the lower trend line of the channel up pattern.
The Bureau of Labor Statistics released Non-Farm Employment Change data lower-than-expected of 20K compared to forecast 180K. Note, that the Average Hourly Earnings and the Unemployment Rate were released at the same time with the Non-Farm Employment Change.
President Donald Trump retweeted: "This is as good a time as I can remember to be an American Worker. We have the strongest economy in the world." Stuart Varney, So true! ".
Busy start of the week
This week will be unusual. The majority of the notable macroeconomic events will take place at the start of the week.
On Tuesday, at 12:30 GMT the US Consumer Price Index and Core Consumer Price Index will be published.
The week's important events will end already on Wednesday. At 12:30 GMT the US Durable Goods Orders and the US Producers Price Index will be released.
For more information watch the weekly calendar analysis stream on our YouTube channel.
USD/JPY short term daily review
During Monday's trading session, the currency exchange rate broke through the resistance of the 55-hour simple moving average to stay at the 111.00 level as it was predicted! On Tuesday morning, the rate was resisted by the 100-hour SMA to be located at the 111.37 mark.Most likely, the 100-hour simple moving average will retrace the rate to depreciate to the 111.00 level.
On the other hand, the 55-hour simple moving average might support the US Dollar during today's US Consumer Price Index and Core Consumer Price Index data release at 12:30 GMT to push the rate to end the trading session below the weekly pivot point at the 111.37 mark.
Hourly Chart
On the daily chart, the rate had passed the support of the 100 and 200- day simple moving averages. This signals that on a larger scale the decline could continue.Meanwhile, the surge of the USD/JPY has been charted. One version of the possible ascending pattern has been drawn and added to the daily chart.
The lower trend line of the pattern is part of a support cluster from the 110.50 to 110.60 level.
Daily chart
Trader open position volume on the Swiss Foreign Exchange remained short, as 62% of the volume was short on USD/JPY.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were set to sell. Namely, 59% of orders were short.
Note that traders had gone short even before the bounce off from the 112.00 level began. The open positions were most likely in the green since then.