The USD/JPY ignored the resistance of the 55, 100 and 200-hour simple moving averages in the 109.85/109.95 zone. Moreover, the weekly simple pivot point at 109.85 provided the rate with resistance for only three hours before being passed.
However, since the middle of Monday's trading hours, the pair has been respecting the 110.00 mark.
Economic Calendar
This week, the rate could be impacted by the release of the US ISM Manufacturing Purchasing Managers Index release on Wednesday at 14:00 GMT.
The top day for fundamental event watchers will be Friday. On Friday, at 12:30 GMT the US will release the country's monthly employment data. Later on, at 14:00 GMT, the US ISM Services Purchasing Managers Index is set to be out.
Most impact is expected from the US employment data release. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.
USD/JPY short-term review
If the pair manages to pass the resistance of the 110.00 level, the currency pair could aim at the August high level zone above the 110.20 mark. Above this zone, the weekly R1 at 110.31 is providing technical resistance.On the other hand, a decline of the USD/JPY might look for support in the trend line, which connects the rate's recent low levels. Below this line, the rate could look for support in round exchange rate levels before reaching the support zone at 109.42/109.50.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the currency exchange rate is bouncing around between the support of the 100-day simple moving average at 109.67 and the 55-day simple moving average at 110.15.Meanwhile, the rate remains in the borders of a channel down pattern. In the case of the channel holding, the USD/JPY pair could continue to trend downward.
Daily chart
Since Monday, traders on the Swiss Foreign Exchange were 69% short on USD/JPY.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 55% to sell.