Since Monday's trading hours, the USD/JPY currency exchange rate has been fluctuating above the 110.50 mark. By large, the situation had not changed, as the rate remained between the support cluster near 110.50 and the resistance of the 55 and 100-hour simple moving averages.
In the near term future, the pair was expected to get squeezed in between the resistance and support levels. In theory it should result in a break out either up or down.
Economic Calendar
On Thursday, the US weekly Unemployment Claims at 12:30 GMT could cause a minor USD move. The rate has moved from 7.4 to 20.8 pips on the release since May 27.
Later on at 14:00 GMT, the ISM Manufacturing PMI is likely going to impact the value of the US Dollar. This event has caused 5.0 to 19.4 pips during the releases since February 1.
On Friday, at 12:30 GMT, all USD traded assets and currency pairs are bound to move due to the monthly US employment data. The data release will consist of US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
The USD/JPY has moved 21.1 to 66.4 pips on the release since February 2021.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
If the pair passes the resistance of the 55 and 100-hour simple moving averages, the rate would most likely reach for the last week's high level zone from 111.00 to 111.11.On the other hand, a possible decline below the support levels and the 110.50 mark could result in a decline to the 110.00 mark. Note that the 110.00 mark was being strengthened by the weekly S1 simple pivot point.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate remains consistent with the channel up pattern, which has guided the rate since the middle of April. In the case of the channel holding and the rate surging in its borders, a potential target would be the 2020 high zone near the 112.00 level.Meanwhile, it can be spotted that, despite piercing them, the pair respects round exchange rate levels.
Daily chart
Since Monday, traders on the Swiss Foreign Exchange were 72% short on USD/JPY, as 72% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 68% to buy.