By mid-Thursday, the rate was fluctuating around the 150.00 mark, as the 151.00 level acted as resistance and support was still expected to be found in the 149.00 level.
In the meantime, it was spotted that Dukascopy traders were 70% long on the pair, as they awaited a retracement back upwards.
Economic Calendar
On Friday, the US monthly employment data sets are bound to move the markets. At 12:30 GMT, the US Bureau of Labor Statistics will publish the Average Hourly Earnings, Non-Farm Employment and the Unemployment Rate. Better than expected data is set to strengthen the USD. Below forecast numbers are likely to cause a decline of the USD.
USD/JPY hourly chart analysis
A move above 151.00 is set to face resistance of the weekly S1 simple pivot point at 151.24 and the 50-hour simple moving average. If these levels to fail to act as resistance, the pair is set to approach the 2022 high level of 152.00 and the support and resistance zone that surrounds it. Note that the range is strengthened by the 100-hour simple moving average.In the case of a decline, the pair would look for support in the combination of the 149.00 level and the weekly S2 simple pivot point at 148.75. Further below, the decline could be slowed down by round exchange rate levels, until the pair reaches the weekly S3 at 145.57 and the 145.00 level. Besides these levels, there is no additional support.
Hourly Chart
USD/JPY daily candle chart analysis
The USD/JPY is breaching one historical support level after another. It appears that it soon might reach the 145.00 mark. However, note that the pair is massively oversold, as the fundamental adjustment has been almost vertical.Read More: Technical Analysis
Traders are long
On Monday, open positions were 62% long.
Meanwhile, pending orders in the 100-point range aroun the rate were 64% to buy.
On Thursday, traders were 70% long and orders were 70% to sell. It appears that traders have observed the oversold conditions and are in long positions.
Meanwhile, pending orders in the 100-point range aroun the rate were 64% to buy.
On Thursday, traders were 70% long and orders were 70% to sell. It appears that traders have observed the oversold conditions and are in long positions.