On Monday, the USD/JPY was testing resistance levels after reaching below the 108.40 level. In general, the currency exchange rate was expected to continue to decline.
A decline could occur, as soon as the hourly simple moving averages catch up with the rate.
At 15:00 GMT the US ISM Manufacturing PMI could cause a move on the USD/JPY from 20.0 to 49.5 pips.
On some calendars, on Wednesday, the ADP Non-Farm Employment Change is shown as a high impact data set. Note that our analysts ignore it, as, for example, on the USD/JPY charts it has caused moves from 3.2 to 19.0 pips since September.
On the same day, the US ISM Non-Manufacturing PMI is scheduled to be released at 15:00 GMT. This event has caused moves from 18.8 to 56.6 pips.
Last but not least, US employment data sets are scheduled to be published on Friday at 13:30 GMT. Moves from 19.5 to 49.8 pips have been caused by this event since September 2019.
The week's event historical data tables have been published. Click on the headline below to read the article.
Read More: 03.02.-07.02 Event Historical Reactions
USD/JPY short-term daily review
During today's morning, the pair was testing the resistance formed by the weekly PP at 108.65.It is likely that some downside potential could prevail in the market, as the exchange rate is pressured by the 55-hour SMA, currently located at 108.76.
However, note that the rate could gain support of the Fibo 38.20% at 108.44. If the given level holds, it is likely that the Greenback could consolidate against the Japanese Yen in the short run.
Hourly Chart
On the daily candle chart, the pair broke out of the squeeze between the 55 and 100-day SMAs. It has reached the support of the 200-day SMA at 108.42.
Daily chart
Read More: Technical Analysis
Traders reduce short sentiment
On Friday, 73% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Monday's GMT trading hours, the sentiment had declined to 65% short.
Meanwhile, in the 100-pip range 60% of pending orders were to sell and 40% were to buy. The orders had not changed since Friday.