Economic Calendar
This week, traders will be initially looking at the ISM Manufacturing Purchasing Managers Index survey results on Wednesday at 14:00 GMT. The publication is set to reveal how the US Manufacturing industry is looking at the future and with it impact the value of the US Dollar.
On Thursday, minor USD moves could occur due to the ADP Non-Farm Employment Change at 12:15 GMT and the US Unemployment Claims at 12:30 GMT. Minor moves are usually around ten to fifteen base points.
On Friday, one of the top events of the whole market will occur. Namely, the release of the US employment data at 12:30 is set to shake up the market. The release will consist of the US Unemployment Rate, Average Hourly Earnings Change and the Non-Farm Employment Change.
Hourly Chart
If the US Dollar ends the May decline against the Japanese Yen, the currency exchange rate could surge to the resistance of the 128.00 level and the weekly R1 simple pivot point at 127.99. Higher above, note the high level zone at 128.18/128.31.
Meanwhile, a decline of the currency pair might find support in the previous resistance levels at 127.47/127.57. Below the zone, the combination of the 50 and 100-hour simple moving averages and the weekly simple pivot point could provide support near 127.15.
USD/JPY daily chart's review
On the daily candle chart, the pair has pierced the combined support of the 126.90/127.55 zone and the 50-day simple moving average. The pair could start a broader decline and look for support in the various 2015 high levels.However, on May 30, the pair appeared to have started a minor recovery.
Daily chart
Since Wednesday, on the Swiss Foreign Exchange, traders were 63% short as that amount of open position volume was in short positions.
Meanwhile, on Friday, trader set up pending orders in the 100-pip range around the rate were 64% to sell the USD against the JPY.
On Monday, the open positions were still 63% short and pending orders were 63% short.