The USD/JPY failed to pass the resistance zone above the 111.60 level. Moreover, during the last attempt to reach higher, the rate was beat down by fundamental news. Namely, worse than expected US employment data was released on Friday at 12:30 GMT.
By the middle of the day's European trading hours, the rate had extended its decline and reached the 110.80 level. In general, the pair had no technical support as low as the 110.46 level, where the weekly S1 simple pivot point was located at.
Economic Calendar
On Tuesday, the US ISM Services Purchasing Managers Index release at 14:00 GMT could cause a minor move on USD pairs. However, note that during most times the event does not cause an increase of volatility.
On Wednesday, at 18:00 GMT, the Federal Open Market Committee is set to publish its Meeting Minutes. Note that it will be just the meeting minutes for the previous meeting. There is no rate announcement or statement being published. Namely, the meeting minutes will have more detailed information about the previous decision of the Federal Reserve.
On Thursday, the US Unemployment Claims at 12:30 GMT could cause a minor move on USD pair and commodity price charts.
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
In the case that the pair declines, it could look for support in round exchange rate levels before reaching the previous week's low level zone near 110.50.On the other hand, a possible recovery would immediately face the resistance of the 100 and 200-hour simple moving averages and the weekly simple pivot point in the 110.90/111.00 area. If these levels would be passed, the rate could aim at the 55-hour simple moving average at 111.33.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate remains consistent with the channel up pattern, which has guided the rate since the middle of April. In the case of the channel holding and the rate surging in its borders, a potential target would be the 2020 high zone near the 112.00 level.Meanwhile, it can be spotted that, despite piercing them, the pair respects round exchange rate levels.
Daily chart
Since Friday, traders on the Swiss Foreign Exchange were 72% short on USD/JPY, as 72% of open position volume was in short positions.
Meanwhile, on Monday, trader set up pending orders in the 100-pip range around the rate were 61% to buy. On Friday, the orders were 53% to sell.