USD/JPY breaks one-month channel up pattern

Note: This section contains information in English only.
Source: Dukascopy Bank SA
In the aftermath of the US Consumer Price Index release, risk off sentiment dominated in the markets, which caused a surge of the value of the Japanese Yen against other currencies. By the middle of Thursday's European trading, on the USD//JPY charts it had resulted in a decline to the 128.50 level.

Economic Calendar



On Thursday, at 12:30 GMT, US Producer Price Index and Core Producer Price Index data will reveal inflation levels at the production level. In addition, take into account that the weekly US Unemployment Claims are scheduled to be released at the same time. Note that on their own, the claims have not been capable of increasing volatility. The moves on USD on April 28 were caused by the release of the negative US GDP, not the Unemployment Claims.

To see historical move tables click on the link below.

Hourly Chart
In the case that the 128.50 level acts as support, the pair might recover. A potential recovery would be expected to encounter resistance in the 129.00 level, the weekly S1 simple pivot point at 129.15 and the 129.50 level.

Meanwhile, a continuation of the decline of the US Dollar against the Japanese Yen could look for support in the 128.00 mark, the weekly S2 simple pivot point at 127.79 and the 127.50 level. Further below, a cluster of support levels is located around 127.00.

USD/JPY daily chart's review

On the daily candle chart, the pair has clearly broken the channel up pattern, which guided the rate's surge from the low level of March 30.

Daily chart




Traders have pending sell orders

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

Meanwhile, on Thursday, trader set up pending orders in the 100-pip range around the rate were 63% to sell the USD against the JPY.

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