USD/JPY pierces major support zone

Note: This section contains information in English only.
Source: Dukascopy Bank SA
With the opening of the US futures market, the USD experienced major demand, which pushed the USD/JPY currency pair up to the combined resistance of the 131.00 mark and the 50-hour simple moving average. However, prior to the recovery the pair had reached the 129.50 level.

Economic Calendar



This week, on Wednesday, the US ISM Manufacturing PMI and JOLTS Job Openings could cause an adjustment in the value of the US Dollar at 15:00 GMT.

Afterwards, at 19:00 GMT, the release of the US Federal Open Markets Committee Meeting Minutes are set to impact the value of the US Dollar. The Meeting Minutes are set to reveal more details on the Federal Reserve's previous meeting and rate decision.

On Thursday, the US ADP Non-farm Employment Change might impact the value of the US Dollar at 13:15 GMT.

On Friday, The United States employment data release at 13:30 GMT is highly likely going to impact the US Dollar. Later on, at 15:00 GMT the ISM Services PMI is set to cause minor impact on the financial markets.

Hourly Chart
A move above the 131.00 mark might encounter resistance in the 131.50 level, prior to approaching the combination of the 132.00 level, the weekly simple pivot point at 132.12 and the 100 and 200-hour simple moving averages.

On the other hand, a decline of the US Dollar might look for support in the December 20 low and the 130.50 level, prior to approaching the 129.50 level. Note that the pair ignored the support of the 130.00 level and weekly S1 simple pivot point at 129.73 during the early hours of Tuesday's trading.

USD/JPY daily chart's review

On the daily candle chart, the pair has reached the 130.50/131.40 zone. This zone has acted as support and resistance throughout 2022. On Tuesday morning, the support range was pierced.
Daily chart



Traders are short

On Monday, on the Swiss Foreign Exchange, traders were 57% 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 56% to buy the USD against the JPY.

On Tuesday, 55% of volume was short and pending orders were 61% to buy.

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