Despite piercing the support of the 113.40 level on Thursday, the USD/JPY did not extend the decline. Instead, the pair found support at 113.25 and recovered.
At mid-day on Friday, the rate had retraced to the 100-hour simple moving average at 113.79.
Economic Calendar
On Monday, the US ISM Manufacturing PMI will be published at 14:00 GMT. The rate has moved from 9.3 to 19.1 pips on the release since June 2021.
On Wednesday, at 12:15 GMT the US ADP Non-Farm Employment Change could cause a minor USD move. The USD/JPY has reacted to the event with moves from 9.7 to 27.3 pips.
Later on, at 14:00 GMT the US ISM Non-Manufacturing PMI will be out. During the event, the pair has moved from 8.5 to 35.4 pips.
Wednesday will end with the US Federal Open Markets Committee Statement and Federal Funds Rate publication at 18:00 GMT. The USD/JPY has moved from 15.9 to 53.2 base points during the time of the publication.
On Thursday, at 12:30 GMT, the US Unemployment Claims on Thursday might cause a minor USD move. The rate has moved 5.9 to 12.2 pips, as the Claims are released.
On Friday, US statisticians will publish their monthly employment data sets at 12:30 GMT. The event has moved USD/JPY from 25.4 to 38.4 pips since June 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
A potential continuation of the surge might reach for the combined resistance of the weekly simple pivot point at 113.89 and the 200-hour simple moving average at 113.92. Above these levels, the weekly R1 at 114.36 might provide additional resistance.However, a decline of the USD/JPY might look for support in the 55-hour SMA at 113.66 and the 113.40 level.
Hourly Chart
USD/JPY daily chart's review
The 114.40/114.75 zone is the resistance zone of the late 2017 and 2018 high levels. On Tuesday, the rate almost approached the zone, before starting a decline.Daily chart
On Wednesday, on the Swiss Foreign Exchange, traders were short, as 70% of open position volume was in short positions.
On Thursday, 72% were short. By the middle of Friday, the sentiment was 75% short.
Meanwhile, on Friday, trader set up pending orders in the 100-pip range around the rate were 67% to sell.
On Thursday, the orders were 51% to sell.