On Tuesday morning, the USD/JPY remained near the previous trading session's levels.
Meanwhile, the 55-hour SMA was approaching the rate. The additional resistance signals that the consolidation of the rate after the recent gap drop is about to end.
Bureau of Labor Statistics released the US Non-Farm Employment Change, which came out better-than-expected of 263K compared with forecast 181K. Note, that the US Average Hourly Earnings and Unemployment Rate were released at the same time.
According to the official release: "Notable job gains occurred in professional and business services, construction, health care, and social assistance."
US data starts on Thursday
This week all the action on the US Dollar from a fundamental side will be in the second half of the week. Meanwhile, there are large events to watch prior to that.On Wednesday, at 02:00 GMT the Reserve Bank of New Zealand will make their rate announcement. This event has caused moves larger than 100 pips during the last two announcements. If you trade sudden moves, get on this, stay late or wake up early.
On Thursday, the usual data starts. At 12:30 GMT the Canadian Trade Balance and the US Producers Price Index will be released. These events can cause a move from five to eighty pips. The range is explained in the weekly Economic Calendar Overview video.
On Friday, there will be two times to watch the calendar.
At 08:30 GMT the UK GDP and Manufacturing Production will be published. This event can cause a move of fifteen to twenty pips.
At 12:30 GMT the Canadian Employment data will cause a move of about forty pips. At the same time the US Consumer Price Index release should cause a move of up to twenty pips. Combined they can have various impacts on the Forex market.
Watch this week's economic calendar analysis and leave comments with questions about the specifics.
USD/JPY short-term daily review
The USD/JPY started the week's trading with a large drop at the start of Monday's trading. It traded with large volatility until it finally found equilibrium near 110.70. In general, the rate has two possible scenarios.In the bullish scenario the rate would pass the resistance of the weekly S1 at 110.81 and begin a surge up to the 55 and 100-hour simple moving averages near 111.00.
On the other hand, the currency rate might drop down to the 110.51 level. At that level the weekly S2 was located at.
Hourly Chart
On the daily candle chart, the USD/JPY has dropped down to the 100-day SMA, which it pierced during the decline.Meanwhile, the 55 and 200-day simple moving averages were located above and provided resistance. Namely, the SMAs were located at 111.35 and 111.48.
Daily chart
On the Swiss Foreign Exchange, 56% of the total open position volume was in short positions.
The sentiment has stopped its previous gradual decline, as, compared to Monday, the short sentiment has increased by one percent.
Meanwhile, trader set up pending orders were bearish, as 67% of pending commands in the 100-pip range were set to sell.