The USD/JPY ended the sideways trading around the 110.50 level by sharply surging up. It initially jumped to the zone above the 111.00 level.
A following sideways trading ended in a resumption of the surge during early Thursday's hours. The surge was expected to reach the resistance of the weekly R1 simple pivot point at 111.40.
Economic Calendar
On Thursday, the US weekly Unemployment Claims at 12:30 GMT could cause a minor USD move. The rate has moved from 7.4 to 20.8 pips on the release since May 27.
Later on at 14:00 GMT, the ISM Manufacturing PMI is likely going to impact the value of the US Dollar. This event has caused 5.0 to 19.4 pips during the releases since February 1.
On Friday, at 12:30 GMT, all USD traded assets and currency pairs are bound to move due to the monthly US employment data. The data release will consist of US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
The USD/JPY has moved 21.1 to 66.4 pips on the release since February 2021.
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
In the case that the rate passes the resistance of the 111.40 level, the pair could reach for the combined resistance of the weekly R2 simple pivot point at 111.96 and the 112.00 mark.On the other hand, a potential decline of the pair could find support in the prior resistance zone of the June high levels above the 111.00 level. If the zone gets passed, the rate would most likely find support in the closely positioned 55, 100 and 200-hour simple moving averages near 110.70.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate remains consistent with the channel up pattern, which has guided the rate since the middle of April. In the case of the channel holding and the rate surging in its borders, a potential target would be the 2020 high zone near the 112.00 level.Meanwhile, it can be spotted that, despite piercing them, the pair respects round exchange rate levels.
Daily chart
On Thursday, traders on the Swiss Foreign Exchange were 74% short on USD/JPY, as 74% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 69% to sell.