On Tuesday, the USD/JPY was finding support in the 108.85 level.
Meanwhile, hourly simple moving averages were approaching from below, which indicated that a surge could be possible during the near future.
Economic Calendar This week the rate is bound to be affected by US data and an expected rate cut.On Wednesday, October 30, the US ADP Non-Farm Employment Change data will be published at 12:30 GMT. The USD/JPY has moved from 5.2 to 19.0 pips on the announcement.
On the same day, the US Advance GDP will be published at 12:30 GMT. This is the top US GDP data release. It has caused moves on the Yen chart from 11.1 to 31.2 pips since July 2018.
Moreover, the FOMC Statement and the Federal Funds Rate are scheduled to be published at 18:00 GMT. The announcement has caused reactions from 21.4 to 52.1 base points since January 2019.
On Friday, November 1, the US Employment data set will be on focus - the Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate data will be published at 12:30 GMT.
This event has caused moves from 26.7 to 49.8 pips since June 2019.
Also on Friday, the ISM Manufacturing PMI survey results will be published at 14:00 GMT. The PMI release has caused reactions from 13.9 to 49.5 base points since June of this year.
For more detailed information take a look at the 28.10-01.11 Event Historical Reactions publication.
Read More: 28.10-01.11 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair reached the psychological level at 109.00. During Tuesday morning, the pair was testing the given level.Note that the exchange rate is supported by the 55-, 100– and 200-hour moving averages, currently located in the 108.64/108.79. Thus, it is likely that bulls could prevail in the market. However, note that the rate would have to surpass the weekly R2 at 109.09.
If the 109.00 resistance holds, it is likely that the US Dollar could trade sideways against the Japanese Yen, supported by the weekly R1 at 108.88. Also, it is unlikely that bears could prevail, and the pair could decline lower than the weekly PP at 108.57.
Hourly Chart
On the daily candle chart, it can be observed that the rate is being kept down by the 200-day simple moving average, which has been moving horizontally since October 8 at the 109.00 level.
Meanwhile, the rate remains in a long term ascending channel pattern, in the borders of which the pair could trade sideways until the middle of November.
Daily chart
Read More: Technical Analysis
Traders remain neutral
Since the middle of Monday's trading, on the Swiss Foreign Exchange USD/JPY open position volume was balanced. 50% of open volume was long and 50% was short.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 72% of pending orders were to sell and 28% were to buy.
Previously, 64% of orders were to sell.