The high volatility of the USD/JPY currency exchange rate, which was caused by the head of the US Federal Reserve Jerome Powell revealed the borders of a channel down pattern, which appears to have guided the rate down throughout this week.
On Wednesday, the rate bounced off the upper trend line of the pattern and passed the support of the 50-hour simple moving average. By the start of the days US trading, the rate had reached the 113.00 mark. Note that the 113.00 level has managed to impact the pair during the week.
Economic Calendar
This week, the main event will be the release of the US employment data on Friday at 13:30 GMT. The release will consists of the publication of the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
The rate has moved from 25.4 to 33.4 pips on the employment release.
Prior to the monthly employment data, on Thursday, at 13:30 GMT the US weekly Unemployment Claims might cause a move.
In addition, take into account the US ISM Services PMI survey results on Friday at 15:00 GMT. This event has caused moves from 8.5 to 35.4 base points.
Click on the link below to find out more about data releases of this and other currency exchange rates.
USD/JPY short-term review
In the case that the USD/JPY currency rate passes the support of the 113.00 level, the pair could reach the 112.50 level. The 112.50 level is being strengthened by the weekly S1 simple pivot point. A move below the 112.50 mark is likely to result in a decline to 112.00 and the lower trend line of the channel down pattern.However, a recovery of the US Dollar against the Japanese Yen would test the combined resistance of the 50-hour simple moving average, the upper trend line of the channel and the 113.50 level. A move above 113.50 could find resistance in the 100-hour simple moving average near 113.75.
Hourly Chart
USD/JPY daily chart's review
The USD/JPY passed the support of the 50-day simple moving average. Further support could be provided by the 2019 and 2020 high level zone, which was broken in October.Daily chart
Since Monday, on the Swiss Foreign Exchange, traders were short, 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 55% to buy.
On Wednesday, the positions were 73% short and orders were 56% to buy.