USD/JPY breaks daily channel

Note: This section contains information in English only.
Source: Dukascopy Bank SA

On Friday, the US Dollar edged higher by 63 pips or 0.58% against the Japanese Yen. The USD/JPY currency pair tested the 110.40 level during Friday's trading session.

Economic Calendar



On Tuesday, the US Prelim Nonfarm Productivity release at 12:30 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 12:30 GMT, the US Core Consumer Price Index is bound to cause USD volatility, which could impact the USD/JPY pair.

Afterwards, on Thursday, at 12:30 GMT, the US Producer Price Index is set to reveal more information about inflation in the United States.


USD/JPY short-term review

Buyers are likely to drive the price of the exchange rate higher during the following trading session. The potential target for bulls will be near the weekly resistance level at 110.84.

However, the currency exchange rate could find resistance at 110.40 within this session.

Hourly Chart

USD/JPY daily chart's review

On the daily candle chart, a breakout through the upper boundary of a descending channel pattern has occurred.

Given that a breakout has occurred, bullish traders are likely to continue to pressure the price higher during the coming days.

However, the USD/JPY currency exchange rate could encounter resistance at 110.50 within the following trading sessions.

Daily chart




Traders remain bearish

On Friday, traders on the Swiss Foreign Exchange were 66% short on USD/JPY.

On Monday, the sentiment was the same.

Meanwhile, on Monday, trader set up pending orders in the 100-pip range around the rate were 69% to sell.

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