Economic Calendar
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
If the decline of the Dollar continues, the rate is set to look for support in the 161.00 level and the ascending 200-hour simple moving average. Further below note the 160.50 and 160.00 levels and the weekly simple pivot point at 160.28. It appears that the pair could continue downwards due to all potential support being spread out.On the other hand, a resumption of the broader surge of the Dollar and decline of the Yen might encounter resistance in the combination of the 50 and 100-hour simple moving averages and the 161.50 level. Higher above, note the weekly R1 at 161.81 and the 162.00 mark, which is currently an almost half-a-century high for this pair.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, we have marked the prior notable high level zones that could turn into support in the event of a decline. There is support near 160.00 and 158.00.In addition, note that the 50-day simple moving average is approaching the 158.00 level. The 50-day SMA has pushed the pair up since early May.
In regards to resistance, the pair could continue to encounter resistance in round level like the 162.00, 164.00, 165.00 and 166.00.
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.
On July 1, we observed some profit taking, as 65% of volume was long and pending orders were 72% to buy.
By July 4, positions were 60% long and orders were 60% to sell.
In general, traders appear to have their trailing or close by stop loss triggered or even taken profits due their triggers. Moreover, additional long positions might be closed and short positions opened.