On Monday, the USD/JPY pair passed the support of the weekly simple pivot point at 106.46. Next support to reach was the 200-hour SMA.
In the meantime, it can be observed on the daily candle chart that the daily simple moving averages had provided resistance at the 107.00 level.
Economic Calendar
Despite the 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
During Monday's GMT morning hours, the USD/JPY currency exchange rate declined below the 106.40 level. The rate had close by the support of the 200-hour SMA at 106.20 and afterwards a monthly pivot point at 106.09. In the meantime, the rate faced resistance of the pivot point at 106.46 and two simple moving averages near 106.70.In the near term future, the rate was expected to test the support of the 200-hour SMA. If the SMA would get passed, the pivot point at 106.09 would immediately provide support.
On the other hand, in the case of the SMA holding, the pair would trade sideways.
Hourly Chart
On the daily candle chart, the rate has bounced off the resistance of the 55 and 100-day simple moving averages. Note that these SMAs also kept the rate down in late June and July.
Daily chart
On Friday, traders of the Swiss Foreign Exchange were neutral, as 50% of all open position volume was long and short.
By the middle of Monday's GMT trading hours, the sentiment was 57% short.
Meanwhile, trader set up pending orders in the 100-pip range were 52% to buy. Previously, the orders were 66% to sell.
It can be observed that the Swiss associated traders had their sell orders executed.