The bounce off from the 112.00 mark has turned into a proper decline, as on Friday the USD/JPY currency exchange rate reached the 111.00 level.
On Monday, the rate had paused the decline, as the support of the 200-hour SMA was approaching the pair. Meanwhile, resistance levels were spread out from 111.24 to 111.44. In the near term future, a squeeze between support and resistance levels was expected.
Economic Calendar
On Tuesday, the US ISM Services PMI at 14:00 GMT could impact the value of the US Dollar and all USD currency exchange rates. The event has moved the USD/JPY from 7.8 to 35.4 base points since May 2021.
On Wednesday, the ADP Non-Farm Employment Change at 12:15 GMT might cause USD volatility. The pair has moved from 8.4 up to 27.3 pips on the release since May 2021.
On Thursday, the weekly US Unemployment Claims at 12:30 GMT might cause a minor move in the USD. The USD/JPY has moved from 3.7 to 24.7 pips on the releases that occurred in September.
On Friday, at 12:30 GMT, the US employment data sets will be out. Namely, the Average Hourly Earnings change, the Non-Farm Employment Change and the monthly Unemployment Rate are bound to impact the value of the US Dollar.
The pair has reacted to the US employment data since May 2021 with moves from 25.4 to 66.4 base points.
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 breaks out to the upside, it would have to break the resistance of the weekly simple pivot point at 111.24, the 55-hour SMA at 111.34 and the 100-hour SMA at 111.44. Above these levels, the weekly R1 at 111.93 might serve as resistance.However, a decline below the 200-hour SMA might result in the USD/JPY reaching the support of the weekly S1 simple pivot point at 110.39.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the USD/JPY appears to be retracing to the summer high levels near 110.60. The previous high levels might provide support for a renewal of the rate's surg.Note the zone marked above the currency exchange rate. The zone is the 2019 and 2020 high level zone. The zone is expected to provide resistance to the currency pair.
Daily chart
On Friday, on the Swiss Foreign Exchange, traders were short, as 74% of open position volume was in short positions.
On Monday, the sentiment was 72% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to buy.