Economic Calendar
Monday's top event was the US ISM Manufacturing PMI release at 14:00 GMT. The markets are taking in the data and adjusting to the reveal. Results are worse than expected, which is causing a decline of the US Dollar.
On Tuesday, at 14:00 GMT, the JOLTS Job Opening data will reveal how many jobs are available in the United States. The data will impact the markets through the value of the US Dollar.
Throughout Wednesday, there will be a number of releases that could cause a Dollar move. At 12:15 GMT ADP Non-Farm Employment Change will be published. At 12:30 GMT, the weekly Unemployment Claims might cause a move. At 14:00 GMT, the ISM Services PMI is set to be published. The day will end with the release of the US Federal Reserve Federal Open Markets Committee Meeting Minutes at 18:00 GMT.
On Friday, the top event of the week will take place. At 12:30 GMT, the United States employment data sets will be published. This release is most certainly going to create volatility.
USD/JPY hourly chart analysis
The ongoing surge is expected to continue between the two trend lines. Resistance could be encountered in the 161.50 level, the weekly R1 simple pivot point at 161.81 and the 162.00 level.In the case of a decline of the pair, the combination of the 50-hour simple moving average and the 161.00 level could provide support, before the pair approaches the supporting trend line and the 100-hour simple moving average.
Hourly Chart
USD/JPY daily chart's review
At the start of the month we wrote: "On the daily candle chart, the pair is being pushed up by the 50-day simple moving average. It has acted as support two times in combination with a round and notable exchange rate level. The SMA could push the pair into the prior high of 160.00 unless the Bank of Japan intervenes once again.The recent comments made by the central bankers could be considered a warning about upcoming intervention and might be enough for the 50-day simple moving average to fail."
Daily chart
Dukascopy traders had profited from the surge, as since the start of June more than 70% were long on the pair.
During the same period, pending orders in the 100-pip range around the pair were more than 80% to buy.
At the start of July, we observed some profit taking, as 65% of volume was long and pending orders were 72% to buy.