Just before Friday's mid-day European trading hours, the USD/JPY broke the resistance of the 109.25/109.35 zone. Due to that reason, the rate was expected to reach for the resistance levels that were located from 109.73 to 109.83.
In the meantime, the currency exchange rate has revealed a narrow channel up pattern, which has guided the rate's surge since the start of Wednesday's trading hours.
Economic Calendar
Next week, on Wednesday, at 13:15 GMT, the US ADP Non-Farm Employment Change is set to be released. This event has caused USD/JPY moves from 3.9 to 13.3 pips since November.
On the same day, at 15:00 GMT the US ISM Manufacturing PMI is set to be scheduled. The rate has moved from 5.0 to 14.4 pips on the announcement.
The week will end on Friday with the top event, as the US Employment data is set to be released at 13:30 GMT. The event will consist of three data sets being released. Combined they have caused moves from 19.7 to 34.0 pips on the charts.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
If the USD/JPY rate passes the resistance levels that are located from the 109.73 to 109.83 levels, the rate would almost immediately test the resistance of the 110.00 level and the weekly R3 simple pivot point at 110.09.On the other hand, if the resistance levels hold and a decline occurs, the rate could look for support in the previously passed 109.25/109.35 zone.
Hourly Chart
On the daily candle chart, after a period of consolidation, the rate has resumed its surge. The June high level at 109.83, where the 61.80% Fibo was located at, should provide resistance.
Daily chart
On Thursday, traders were 72% short on USD/JPY. On Friday, the sentiment was 74% short.
The Swiss Foreign Exchange open positions have been mostly short for almost a month. It appears that traders expect a larger retracement back down.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 65% to sell.
Previously, 53% of orders were to buy.