At mid-day on Thursday, the USD/JPY currency exchange rate passed five technical support levels. Namely, the 50, 100 and 200-hour simple moving averages, the weekly simple pivot point and the lower trend line of this week's channel up pattern failed to hold the pair up.
Only the 50-hour SMA and the lower trend line of the channel pattern managed to hold the rate up for three hours, before eventually failing.
However, after passing the support levels, the rate surged back above them to the 114.00 level. Due to that reason the future direction of the pair remains unclear.
Economic Calendar
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
If the USD/JPY surges, it could eventually reach the resistance of the high level zone at 114.42/114.47 and the weekly R1 simple pivot point at 114.49. Although, the Wednesday high levels at 114.21/114.28 might slow down an upcoming surge.On the other hand, a decline might be slowed down by the 113.72/113.75 zone before aiming at the wide low level zone at 113.25/113.45.
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. Meanwhile, the 113.50 mark appears to be providing support.Daily chart
Since Tuesday, on the Swiss Foreign Exchange, traders were short, as 72% of open position volume was in short positions.
On Thursday, the sentiment changed, as 74% of volume was short.
Meanwhile, on Thursday, trader set up pending orders in the 100-pip range around the rate were 53% to sell.
On Wednesday, the orders were 64% to sell.