The US Dollar has encountered resistance against the Japanese Yen in a zone from 111.63 to 111.66. On Friday morning, the rate bounced off this zone and declined to the 111.40 mark, which was supported by the weekly R1 simple pivot point.
Economic Calendar
On Tuesday, the US ISM Services Purchasing Managers Index release at 14:00 GMT could cause a minor move on USD pairs. However, note that during most times the event does not cause an increase of volatility.
On Wednesday, at 18:00 GMT, the Federal Open Market Committee is set to publish its Meeting Minutes. Note that it will be just the meeting minutes for the previous meeting. There is no rate announcement or statement being published. Namely, the meeting minutes will have more detailed information about the previous decision of the Federal Reserve.
On Thursday, the US Unemployment Claims at 12:30 GMT could cause a minor move on USD pair and commodity price charts.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
In the near term future, the rate could find support in the 111.40 level and recover. In this case scenario the pair might surge to the resistance of the 111.63/111.66 zone. If the zone fails to hold, the rate would resume its surge and aim at the 112.00 mark.On the other hand, a potential decline below 111.40 would most likely look for support in the 111.20 level and the 55-hour simple moving average. A passing of the 111.20 level could result in a decline to the 111.00 mark.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate remains consistent with the channel up pattern, which has guided the rate since the middle of April. In the case of the channel holding and the rate surging in its borders, a potential target would be the 2020 high zone near the 112.00 level.Meanwhile, it can be spotted that, despite piercing them, the pair respects round exchange rate levels.
Daily chart
On Thursday, traders on the Swiss Foreign Exchange were 74% short on USD/JPY, as 74% of open position volume was in short positions.
On Friday, 72% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 53% to sell.