Due to this reason, the USD/JPY pair started a decline on Tuesday morning. By mid-day the rate had reached below 155.00.
Economic Calendar
This week, the markets will watch the US Employment data release. It is scheduled for Friday 12:30 GMT. The data release moves all of the financial markets, as it causes a move in the US Dollar.
US Employment data release consists of the US Average Hourly Earnings change, Non-Farm Payrolls and Unemployment rate.
USD/JPY hourly chart analysis
An extension of the ongoing decline could be slowed down by the lower trend line of a channel down pattern and round exchange rate levels like the 154.50, 154.00 and 153.30.In the meantime, a potential recovery of the US Dollar against the Japanese Yen would have to break the resistance of the weekly S3 at 155.19. Higher above, note the combination of the weekly S2 at 155.78 and the descending upper trend line of the channel pattern.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the pair is being pushed up by the 50-day simple moving average. It has acted as support two times in combination with a round and notable exchange rate level. The SMA could push the pair into the prior high of 160.00 unless the Bank of Japan intervenes once again.
The most recent comments made by the central bankers could be considered a warning about upcoming intervention and might be enough for the 50-day simple moving average to fail.
Daily chart
Read More: Technical Analysis
Traders remain bullish
On Monday, trader open positions were long, as 72% of open positions volume at Dukascopy was in bullish positions.
In the meantime, pending orders in the 100-pip range around the current price were 97% to buy.
On Tuesday, traders were 70% long and orders were 83% to buy.