Economic Calendar
On Thursday, watch out for the Bank of England's expected rate hike at 5.25%. It is possible that not only the GBP pairs, but other financial instruments could adjust to the continuation of rate increases.
On Friday, at 12:30 GMT, the US employment data will impact the USD and all rates that involve it. The release will consist of the US Average Hourly Earnings change, Non-Farm Employment Change and the official Unemployment Rate.
Hourly Chart
A continuation of the ongoing USD surge against the Japanese Yen is expected to face resistance in the 144.00 mark and the weekly R2 simple pivot point at 144.09. Higher above, note the 145.00 mark where the pair stopped in late June, prior to dropping below 137.50.
In the case of a decline of the currency pair, support could be found in the 142.70/143.10 range and the weekly R1 simple pivot point at 142.61. In addition, note the approaching 50-hour simple moving average. Further below, note the 141.50/142.00 zone that has acted as support and resistance.
USD/JPY daily chart's review
On the daily candle chart, the pair found support in the 100-day simple moving average. The technical indicator acted as support two times and appears to have caused the recent recovery of the US Dollar against the Yen.More recently, the rate ignored the resistance and support of the 50-day simple moving average. It appears it is incapable of impact the USD/JPY. The rate is heading to the resistance zone at 145.00/146.00.
Daily chart
On Monday, traders were bearish on USD/JPY, as 64% of open positions on the Swiss Foreign Exchange were short.
In the meantime, trader pending orders in the 100-point range around the current exchange rate are 62% to buy.
On Tuesday, traders were 63% short and orders were 76% to buy. It appears that the traders went short expecting a continuation of the decline. The increase in buy orders indicates that a capitulation of the bears might occur. Namely, the buy orders could be stop losses.