The USD/JPY currency exchange rate eventually found enough support in the 109.33/109.36 zone to pass the resistance of the 55-hour simple moving average, which reversed an attempted recovery on Tuesday.
By the middle of Wednesday's trading hours, the pair had reached above the 61.80% Fibonacci retracement level at 109.83.
Economic Calendar
There is one major notable event to watch this week. The US Employment data sets on Friday at 12:30 GMT are most likely going to impact the USD/JPY currency exchange rate.
Namely, the release of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate have caused USD/JPY moves from 21.1 to 66.4 pips since January.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
In the near term future, the pair could first test the 110.00 level and afterwards the 110.20 mark. The 110.20 level stopped and reversed the rate's late May sharp surge upwards.If the USD/JPY passes the resistance of the 110.00 and 110.20 levels, the pair could reach the 110.50 mark and the weekly R1 simple pivot point at 110.55.
On the other hand, the 110.00 and 110.20 levels could once again force the USD/JPY into a decline. A potential decline would look for support in the 55 and 100-hour simple moving averages.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate is surging after finding support in the 50.00% Fibonacci retracement level at 108.57. In the meantime, the resistance of the 110.00 mark is being strengthened by the 61.80% Fibonacci retracement level.Daily chart
On Monday, traders on the Swiss Foreign Exchange were 65% short on USD/JPY, as 65% of open position volume was in short positions.
On Tuesday, the sentiment was 68% short. By the middle of Wednesday, the sentiment was 71% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were almost neutral, as 52% were to sell.