As expected, the USD/JPY made another attempt to pass the resistance of the 107.00 level. Moreover, it made three attempts during Thursday's trading. All attempts failed.
On Friday morning, the currency exchange rate declined and even passed the 55-hour simple moving average, which had been pushing the rate up since August 7.
Economic Calendar
The week will end with the US Retail Sales data release on Friday at 12:30 GMT.
Despite the next week having high impact events on the calendar, Dukascopy Analytics do not expect notable macroeconomic data caused moves.
First of all, note that the FOMC Meeting Minutes on Wednesday will not have a rate announcement and a statement. The Meeting Minutes on their own were excluded from the historical data analysis after for a half-year period it caused only four pip moves on the EUR/USD. Equivalent minor moves occurred on other pairs.
On Thursday, the weekly US Unemployment Claims are set to be published at 12:30 GMT. The event has caused minor moves throughout July.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
It is likely that the exchange rate could be pushed down by the 55-hour SMA and the Fibo 38.20% at 106.86. In this case the rate could target the support area formed by the weekly and monthly PPs, as well the 200-hour SMA in 105.90/106.10.In the meantime, it is likely that the currency pair could gain support from the 100-hour SMA and the weekly R1 at 106.51. Thus, the pair could trade sideways in the short run.
Hourly Chart
On the daily candle chart, the rate has reached the resistance of the 55 and 100-day simple moving averages, which are keeping the rate from surging. Note that these SMAs kept the rate down in late June and July until a drop of the pair started.
Daily chart
On Friday, traders of the Swiss Foreign Exchange were neutral, as 50% of all open position volume was long and short.
Meanwhile, trader set up pending orders in the 100-pip range were 66% to sell. Previously, the orders were 64% to sell.