The small channel down pattern of the USD/JPY was broken, as its upper trend line held for four hours before the USD/JPY passed it.
The following surge eventually stopped at the combined resistance of the 55 and 100-hour simple moving averages. The SMAs forced the pair into a decline, which on Friday afternoon was heading to the weekly simple pivot point at 113.64.
Economic Calendar
At 13:45 GMT on Friday, the week's notable events will end with the publication of the US Manufacturing and Services PMIs. The USD/JPY has moved has moved from 6.5 to 11.9 pips allegedly due to the release since May 21.
Next week, on Wednesday, at 12:30 GMT, the US Durable Goods Orders and Core Durable Goods Orders change data will be published. The rate has moved only 6.1 to 12.1 pips due to the release since May.
At 12:30 GMT, on Thursday, the US Advance GDP is expected to impact the value of the US Dollar. In addition, the US Unemployment Claims could also slightly impact the USD. The GDP has moved the USD/JPY from 6.0 to 14.6 pips, and the Claims from 5.9 to 12.2 base points.
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 rate once again finds support in the weekly simple pivot point at 113.64, a potential surge would highly likely encounter resistance in the 200-hour SMA at 113.95 and the 55 and 100-hour SMAs near 114.10/114.20. Above the SMAs, previous high levels might provide resistance at 114.40, 114.50 and 114.60.Meanwhile, a passing of the support of the 113.64 level would have no technical support as low as the weekly S1 simple pivot point at 112.82. Due to that reason it is more likely that round exchange rate levels could provide support. For example, the 113.00 mark could provide support, as it managed to reverse a decline on October 12.
Hourly Chart
USD/JPY daily chart's review
The 114.40/114.75 zone is the resistance zone of the late 2017 and 2018 high levels. This zone appears to have started to keep the rate down.Most recently, it appears that the 2017 November high level was strong enough to cause a decline.
Daily chart
On Thursday, on the Swiss Foreign Exchange, traders were short, as 74% of open position volume was in short positions.
On Friday, 73% were short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to sell.