The 110.00 mark was reached by USD/JPY as expected. Although, after piercing the resistance at 110.00 it failed to gain more.
The rate reached slightly above the 110.15 mark and retraced back down below the 110.00 level.
In general, it can be observed that the pair is trading sideways and consolidating its gains after the 250 pip surge since Friday.
The Bureau of Labor Statistics released Non-Farm Employment Change data better-than-expected of 304K compared to forecast 165K. Note, that the Average Hourly Earnings and the Unemployment Rate were released at the same time with the Non-Farm Employment Change.
The U.S. Bureau of Labor Statistics reported on Friday: "The labor force participation rate, at 63.2 percent, and the employment-population ratio, at 60.7 percent, changed little over the month; both measures were up by 0.5 percentage point over the year."
No data relevant to the USD/JPY during the week
There are various minor data releases scheduled for this week, which are unlikely going to influence the USD/JPY. However, there are two notable events to watch and/or trade.The Bank of England rate announcement is scheduled for Thursday. The rate announcement and the results of the central bank's monetary policy vote will be published at 12:00 GMT.
Another notable event during this week will be the Canadian Employment data release on Friday at 13:30 GMT.
Both of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more detailed info and a chance to ask questions watch the weekly calendar analysis by clicking on the link below.
USD/JPY short term daily review
On the hourly chart note that the approaching support of the 55-hour simple moving average might end the sideways trading of the currency exchange rate.The SMA is set to force the pair into another attempt to break the resistance of the 110.00 level. If it manages to do it, the rate will aim at 110.50. At that level the weekly R2 is located at.
On the other hand, the SMA might fail and then the closest support level will be a Fibonacci retracement level at 109.60.
Hourly Chart
A descending pattern can be better observed on the daily chart. Take into account that the pattern is non-traditional, as the support line is drawn by using previous year's high levels and the recent low level.In addition, the new weekly pivot points are blocking the pair from surging up to the resistance cluster near the 111.00 level.
Watch the resistances near the 110.00, 110.50 and 111.00 levels. Around these levels there is likely going to be action.
Daily chart
Traders that use the Swiss Foreign Exchange have closed their short positions. Instead of 57% short positions like previously, on Tuesday 51% of positions were short.
Meanwhile, trader set up pending orders - stop losses, take profits and position open orders in the 100-pip range were set to buy. 56% of orders were set to buy in that range.
It seems that the short positions were closed by the triggering of stop losses above the 110.00 level. Meanwhile, it can be noticed that there are traders that are waiting for buy signals to open long positions.