On Monday morning, the USD/JPY tested the resistance of the 109.70 level. Near that level resistance is provided by a 50.00% Fibonacci retracement level and a trend line, which connects the high levels of 2018 and 2019.
Note that one has to zoom out the chart for the historical price information to load and the reference points for the two year trend line to be properly set.
On Monday, at 15:00 GMT the ISM Manufacturing PMI is set to be published. Take into account that the time was changed. It was previously scheduled for 14:00 GMT. This event has caused moves from 13.9 to 49.5 pips since July 2019.
On Wednesday, there are two US events that the media will pay attention to. The ADP Non-farm Employment Change at 13:15 GMT and the US ISM Non-Manufacturing PMI at 15:00 GMT.
The ADP Employment Change has caused moves from 3.2 to 19.0 pips.
In the meantime, the ISM Non-Manufacturing PMI since June 2019 has caused moves from 8.0 to 56.6 pips.
On Friday, the US Employment data sets will be published at 13:30 GMT. The event consists of three numbers – Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. Since July, moves from 26.7 to 49.8 pips have been caused by the release.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
USD/JPY short-term daily review
On the hourly candle chart, the rate passed the support of the 55-hour SMA at 109.54 and was expected to reach the 100-hour SMA, which was located near 109.40.The 100-hour SMA in theory should provide support and push the rate into another test of the 109.70 level.
On the other hand, in the case of the 100-hour SMA failing to hold the rete up, the USD/JPY would decline down to the simple weekly pivot point at 109.29.
Hourly Chart
On the daily candle chart, one can zoom out and better observe the already mentioned Fibonacci retracement levels. They have been actively impacting the USD/JPY rate throughout 2019.
In addition, the resistance line of the 2018 and 2019 high levels has been added to the chart.
Daily chart
On Monday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were to sell. In the 100-pip range 77% of pending orders were to sell and 23% were to buy.
Since Friday, it has been assumed that traders are expecting a reversal after the surge that has occurred since November 20.