On Monday morning, the USD/JPY rate declined and began to trade between the support of the 100-hour SMA and the resistance of the 55-hour simple moving average.
In the near term future, a squeeze between the pivot points was expected to cause a surge to the 106.00 level.
Economic Calendar
On Wednesday, at 12:15 GMT the ADP Non-Farm Employment Change data release could cause a move. For example, the USD/JPY has moved from 8.3 to 19.6 pips on the announcement.
On the same day, at 12:30 GMT the US are publishing GDP data. A move of 5.5 to 38.9 pips has occurred on the release. However, the 38.9 pip move was an anomaly caused by the coronavirus.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
The week will end with a monthly data release. The US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate are scheduled for 12:30 GMT. USD/JPY has moved from 11.7 to 48.7 pips on the announcement.
Click on the link below to see the historical reaction tables.
USD/JPY short-term daily review
In theory, the rate should get squeezed in between the 55 and 100-hour SMAs. A squeeze would then end with a break out to the upside, as the 100-hour SMA would push the rate up.In the case of a surge, the pair would have no technical resistance as high as 106.00. At that level the weekly simple pivot point was located at.
On the other hand, if the SMA fails to push the rate up, it could continue to trade sideways near the 105.40 level.
Hourly Chart
On the daily candle chart, it can be spotted that the 55-day simple moving average was strengthening the 106.00 level.
Daily chart
Since last Monday, traders of the Swiss Foreign Exchange were long, as 57% of all open position volume was in long positions.
This, week traders became neutral, as 50% of volume was long and 50% was short.
Meanwhile, trader set up pending orders in the 100-pip range were 51% to sell.
The orders were 66% to sell on Friday.