USD/JPY recovers as expected

Note: This section contains information in English only.
Source: Dukascopy Bank SA
As the US news passed, the USD/JPY started to recover. The inherent weakness of the Japanese Yen will continue to dominate the USD/JPY charts, despite USD weakness. Since Friday, the pair was testing the resistance of the 156.00/156.30 range. Meanwhile, support is provided by the 50, 100 and 200-hour simple moving averages.

Economic Calendar



This week, various Federal Reserve speakers are giving speeches about monetary policy. It appears that they could make comments that create sudden moves.

In regards to macroeconomic data releases, on Wednesday, the US Federal Reserve Federal Open Market Committee Meeting Minutes, which is the name for Fed meeting protocol, will be released. The pdf file could provide more insight how the Fed decided to do nothing about the returning inflation

On Thursday, markets will be watching the European, UK and US Markit Flash Services and Manufacturing sector Purchasing Managers Indices. The PMIs are survey results of the mentioned sectors. The survey results could surprise the financial markets by revealing that a certain country is doing better or worse than thought. As a result the respective currency should either loose or gain value against other financial assets.

USD/JPY hourly chart analysis

A move above 156.30 is set to face the 156.50 level and the combination of the 157.00 mark and the weekly R1 simple pivot point at 157.06. Higher, the 157.50 and 158.00 levels are set to act as resistance.

In the case of a decline below the hourly simple moving averages, the 155.50 level and the weekly simple pivot point at 155.33 might provide support. Further below, the 154.50/154.80 range is set to impact the rate.

Hourly Chart

USD/JPY daily chart's review

Prior analysis: "On the daily candle chart, the rate has ended the long steak of gains that started when the pair hit the combination of the 152.00 level that marks the 2022 high level and the 50-day simple moving average. It could be that a consolidation takes place until the moving average provides support."

On Monday, it is clear that the approaching 50-day simple moving average was the needed support to resume the surge. The SMA could push the pair into the prior high of 160.00 unless the Bank of Japan once again intervenes.

 Daily chart



Traders are riding the recovery

On Monday, traders were long, as 74% of volume was in bullish positions.

Meanwhile, pending orders around the current rate were 68% to buy. More positions could be opened in the near term future.

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