On Monday, the USD/JPY traded in the range that it reached on Friday. Namely, the pair fluctuated between the 108.65 and 108.80 levels.
Meanwhile, take into account that the 55-hour simple moving average had approached and the pair and started to provide support.
Economic Calendar This week the rate is bound to be affected by US data and an expected rate cut.On Wednesday, October 30, the US ADP Non-Farm Employment Change data will be published at 12:30 GMT. The USD/JPY has moved from 5.2 to 19.0 pips on the announcement.
On the same day, the US Advance GDP will be published at 12:30 GMT. This is the top US GDP data release. It has caused moves on the Yen chart from 11.1 to 31.2 pips since July 2018.
Moreover, the FOMC Statement and the Federal Funds Rate are scheduled to be published at 18:00 GMT. The announcement has caused reactions from 21.4 to 52.1 base points since January 2019.
On Friday, November 1, the US Employment data set will be on focus - the Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate data will be published at 12:30 GMT.
This event has caused moves from 26.7 to 49.8 pips since June 2019.
Also on Friday, the ISM Manufacturing PMI survey results will be published at 14:00 GMT. The PMI release has caused reactions from 13.9 to 49.5 base points since June of this year.
For more detailed information take a look at the 28.10-01.11 Event Historical Reactions publication.
Read More: 28.10-01.11 Event Historical Reactions
USD/JPY short-term daily review
During previous trading session, the USD/JPY currency pair tried to surpass the psychological level at 108.75. During Monday morning, the pair continued to test the given level.Note that the exchange rate is supported by the 55-, 100– and 200-hour moving averages, currently located circa 108.60. Thus, bulls could prevail in the market in the short run. The rate could target the weekly R1 located at the 108.88 mark.
On the other hand, the US Dollar could trade sideways against the Japanese Yen at the 108.75 mark in the nearest future. Also, it is unlikely that bears could prevail, and the pair could drop lower than the weekly PP at 108.57.
Hourly Chart
On the daily candle chart, the low level of October 3 has provided with a reference point for drawing simple trend patterns. Dukascopy Analytics added an ascending channel pattern. This pattern could guide the rate higher until the end of the year.
Meanwhile, the rate surpassed the 38.20% Fibonacci retracement level at 108.43 and is testing the 200-day moving average.
Daily chart
Read More: Technical Analysis
Traders close short positions
On Friday, 66% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
As the rate had surged, the short positions were closed. By the middle of Monday's trading, the sentiment was balanced. 50% of position were long and 50% were short.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 64% of pending orders were to sell and 36% were to buy.