The USD/JPY has dropped below the 55-hour SMA after numerous failed attempts to pass the 110.00 level.
The retreat of the pair was stopped by the middle of Wednesday's trading by the 50.00% Fibonacci retracement level at 109.60.
The pair has two possible scenarios for the future that revolve around the 55, 100 and 200-hour simple moving averages.
The Bureau of Labor Statistics released Non-Farm Employment Change data better-than-expected of 304K compared to forecast 165K. Note, that the Average Hourly Earnings and the Unemployment Rate were released at the same time with the Non-Farm Employment Change.
The U.S. Bureau of Labor Statistics reported on Friday: "The labor force participation rate, at 63.2 percent, and the employment-population ratio, at 60.7 percent, changed little over the month; both measures were up by 0.5 percentage point over the year."
No data relevant to the USD/JPY during the week
There are various minor data releases scheduled for this week, which are unlikely going to influence the USD/JPY. However, there are two notable events to watch and/or trade.The Bank of England rate announcement is scheduled for Thursday. The rate announcement and the results of the central bank's monetary policy vote will be published at 12:00 GMT.
Another notable event during this week will be the Canadian Employment data release on Friday at 13:30 GMT.
Both of these events are scheduled to be covered by Dukascopy Analytics on our Dukascopy Webinars YouTube channel. The streams start ten minutes before the data release.
For more detailed info and a chance to ask questions watch the weekly calendar analysis by clicking on the link below.
USD/JPY short term daily review
During the previous trading session, the currency exchange rate was resisted by the weekly R1 at 110.01 to keep the rate to move sideways during the day. On Wednesday morning, the US Dollar was located near the 50.00% Fibonacci retracement level at the 109.65 mark.In regards to the near-term future, most likely, the US Dollar will trade sideways between the 55-hour and the 200-hour simple moving averages at the 109.60 level.
On the other hand, the support levels of the 100-hour SMA and the 50.00% Fibo could poke the rate to break the resistance of the weekly R1 at 110.01.
Hourly Chart
A descending pattern can be better observed on the daily chart. Take into account that the pattern is non-traditional, as the support line is drawn by using previous year's high levels and the recent low level.In addition, the new weekly pivot points are blocking the pair from surging up to the resistance cluster near the 111.00 level.
Watch the resistances near the 110.00, 110.50 and 111.00 levels. Around these levels there is likely going to be action.
Daily chart
Since Tuesday 51% of positions on the Swiss Foreign Exchange were short.
Meanwhile, trader set up pending orders - stop losses, take profits and position open orders in the 100-pip range were set to buy. 64% of orders were set to buy in that range.
The amount of traders that are waiting for a buy signal in the form of the passing of the 110.00 level seems to have increased.