The USD/JPY has reached a new high level, as it has almost reached the 107.00 mark.
In the near term future, the pair was expected to look for support that could provide the needed push for the rate to reach new high levels.
Economic Calendar
On Wednesday, the US ADP Non-Farm Employment Change at 13:15 GMT will be on the headlines. However, the market does not care, as since December 2 the rate has moved only 3.9 to 13.3 pips on the release.
On the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI could cause a move from 3.0 to 16.0 pips.
On Friday, at 13:30 GMT the US will publish its monthly employment data. The release will consist of the Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. The USD/JPY has moved from 10.4 to 25.9 pips on the publication since October.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
The surge of the USD/JPY currency exchange rate continues, as on Tuesday morning, the rate was testing the 106.90 level. In the meantime, the 38.20% Fibonacci retracement level at 106.86 not manage to provide resistance.In the meantime, it was spotted that the rate is gradually pushed up by the 55-hour simple moving average. Namely, the rate surges, then consolidates until the SMA catches up and afterwards resumes the surge. Due to that reason, it is expected that the rate would continue to be pushed up.
On the other hand, the resistance of the round exchange rate level of 107.00 or the weekly R1 simple pivot point at 107.25 could stop the rate's surge.
Hourly Chart
On the daily candle chart, the channel up pattern, which captures the 2021 surge, has remained intact. The lower trend line supported the 105.00 mark, from which the rate bounced off last Tuesday.
On Tuesday, it was the sixth consecutive trading session of gains for the US Dollar against the Japanese Yen.
Daily chart
On Friday and Tuesday, traders were 75% short on USD/JPY.
On Monday, on the Swiss Foreign Exchange 74% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 51% to sell. The orders were 55% to buy on Monday.