USD/JPY reacted to the news by declining to the support zone at 156.00/156.25. By mid-day, the range had held and the declined appeared to be over.
Economic Calendar
This week, the markets will watch the US Employment data release. It is scheduled for Friday 12:30 GMT. The data release moves all of the financial markets, as it causes a move in the US Dollar.
US Employment data release consists of the US Average Hourly Earnings change, Non-Farm Payrolls and Unemployment rate.
USD/JPY hourly chart analysis
The recovery of the US Dollar against the Japanese Yen is set to face resistance in the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point near 157.00/157.10. Higher above, ntoe the resistance of the 157.50 level and the 157.70 level.In the meantime, a potential decline below 156.00 could result in the pair looking for support in the weekly S2 simple pivot point at 155.78 and the weekly S3 at 155.19. If these levels fail, the rate will look for support in the 155.00 mark.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the pair is being pushed up by the 50-day simple moving average. It has acted as support two times in combination with a round and notable exchange rate level. The SMA could push the pair into the prior high of 160.00 unless the Bank of Japan intervenes once again.
Daily chart
Read More: Technical Analysis
Traders are riding the recovery
Trader open positions are long, as 72% of open positions volume at Dukascopy is in bullish positions.
In the meantime, pending orders in the 100-pip range around the current price were 97% to buy.