USD/JPY reveals support zone

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The USD/JPY currency pair eventually found support in the 133.60/133.70 range on Friday morning. Afterwards, the US Dollar surged due to the higher than expected US monthly employment data, but encountered resistance in 136.00. By 08:00 GMT on Monday, the pair was trading near the 135.00 mark, which was strengthened by the 50-hour simple moving average.

Economic Calendar



On Monday at 15:00, the US ISM Services Purchasing Managers Index might impact the US Dollar's value.

On Friday, the US Producers Price Index and Core Producers Price Index are set to reveal inflation changes in the United States at the production level. In general, it is assumed that producer level inflation is followed afterwards by consumer level inflation, which the US policymakers want to reduce.

Hourly Chart
If the US Dollar surges against the Japanese Yen, the currency pair might encounter resistance in the combination of the weekly simple pivot point at 135.93 and the 136.00 level. Higher above, take into account the 136.50 level and the descending 100-hour simple moving average.

However, a potential decline of the USD/JPY rate might look for support in the 134.50 and 134.00 levels, before reaching the Friday's low level zone at 133.60/133.70.

USD/JPY daily chart's review

On the daily candle chart, the pair is already below the 2002 high level of 135.00. Note the lower trend line of the channel down pattern, which has been guiding the rate down since early October.

Daily chart




Traders are short

On Monday, on the Swiss Foreign Exchange, traders were 61% short, as that amount of open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 73% to buy the USD against the JPY.

On Friday, the sentiment was 59% short and orders were 88% to sell.

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