On Friday, the USD/JPY currency exchange rate continues the recovery that was started on September 15. During the surge, the pair only shortly paused at resistance levels like the hourly simple moving averages. By the middle of Friday's London trading hours, the rate had reached the 110.00 level and the weekly simple pivot point at 110.07.
Economic Calendar
On Wednesday, the top event of all macroeconomic events will occur. The US Federal Reserve Federal Open Market Committee is going to publish their Economic Projections, Statement and the Federal Funds Rate.
On Thursday, Markit Institute will publish their Purchasing Managers Indexes. The indexes are a result of survey of manufacturing and services sector managers about their outlook on their respective fields.
Also on Wednesday, at 12:30 GMT, the weekly US Unemployment Claims could cause minor increases of volatility. However, for example, the range for the EUR/USD moves during the release has been from 5.4 to 11.1 base points. On average, the EUR/USD moves less than 10 points on its own, during no event environment.
The week's notable events will end with the US Markit PMI release. Namely, the US Flash Manufacturing and Services PMIs at 13:45 GMT are highly likely to cause USD moves.
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
A passing of the resistance of the 110.00 mark and the pivot point could once again test the week's high levels near 110.15. A move above 110.15 would likely reach for the September high zone and the weekly R1 simple pivot point near 110.40.On the other hand, a bounce off from the resistance of the 110.00 level might result in looking of support in the previously easily passed hourly simple moving averages at 109.90, 109.70 and 109.60. Note that the 55-hour SMA is also strengthening the weekly S1 at 109.57.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has broken free from trading near the 55 and 100-day simple moving average. From a technical perspective, the rate was squeezed in between the SMAs and the US CPI release provided the needed push for it to break out.In regards to the future, if the pair continues to decline, it would look for support in the zone that surrounds the 109.00 mark.
Daily chart
Since Wednesday, the sentiment had decreased to 63% short, as 63% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
On Friday, the sentiment became 69% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to sell on Friday.