The decline of the USD/JPY reached below the 109.40 level, where it found support in the 109.33/109.36 zone. During Tuesday's trading hours, the rate had recovered and reached the resistance of the 55-hour simple moving average near 106.70.
Economic Calendar
There is one major notable event to watch this week. The US Employment data sets on Friday at 12:30 GMT are most likely going to impact the USD/JPY currency exchange rate.
Namely, the release of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate have caused USD/JPY moves from 21.1 to 66.4 pips since January.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
If the 55-hour SMA provides enough resistance, the pair could once again test the 109.33/109.36 zone's support. If it would be passed, the pair could reach for the 200-hour simple moving average near 109.20.On the other hand, a surge above the SMA could eventually reach the 110.20 level and make another attempt at breaking it.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate is surging after finding support in the 50.00% Fibonacci retracement level at 108.57. In the meantime, the resistance of the 110.00 mark is being strengthened by the 61.80% Fibonacci retracement level.Daily chart
On Monday, traders on the Swiss Foreign Exchange were 65% short on USD/JPY, as 65% of open position volume was in short positions.
On Tuesday, the sentiment was 68% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were bullish, as 54% were to buy.