The USD/JPY began a recovery on Tuesday morning prior to reaching the support zone at 113.25/113.44. By the start of the day's US trading hours at 13:30 GMT, the pair had reached and was testing resistance near 113.80. Namely, the 100 and 200-hour simple moving averages and the weekly simple pivot point were providing resistance from 113.80 to 113.88.
Economic Calendar
On Wednesday, at 12:15 GMT the US ADP Non-Farm Employment Change could cause a minor USD move. The USD/JPY has reacted to the event with moves from 9.7 to 27.3 pips.
Later on, at 14:00 GMT the US ISM Non-Manufacturing PMI will be out. During the event, the pair has moved from 8.5 to 35.4 pips.
Wednesday will end with the US Federal Open Markets Committee Statement and Federal Funds Rate publication at 18:00 GMT. The USD/JPY has moved from 15.9 to 53.2 base points during the time of the publication.
On Thursday, at 12:30 GMT, the US Unemployment Claims on Thursday might cause a minor USD move. The rate has moved 5.9 to 12.2 pips, as the Claims are released.
On Friday, US statisticians will publish their monthly employment data sets at 12:30 GMT. The event has moved USD/JPY from 25.4 to 38.4 pips since June 2021.
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
A passing of the technical resistance at 113.80/113.88 could find further resistance at 114.00. The 114.00 mark is capable of impacting the rate's direction. In addition, the 55-hour simple moving average was strengthening the resistance of the 114.00 level. Above the 114.00 mark, the previous high levels at 114.45 might act as a resistance.However, a decline of the pair might find support in the weekly S1 simple pivot point at 113.43 and the last week's low level zone at 113.26/113.44.
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. On Monday, the rate once again moved into the zone.Daily chart
Since Friday, on the Swiss Foreign Exchange, traders were short, as 75% of open position volume was in short positions.
On Tuesday, 72% of volume was in short positions.
Meanwhile, on Tuesday, trader set up pending orders in the 100-pip range around the rate were 54% to sell.
On Monday, the orders were 72% to sell.