During late Thursday's trading hours, the USD/JPY reached above the resistance of the zone just below the 110.00 level and the 110.20 mark. After passing the resistance levels, the rate began to consolidate by trading sideways.
At mid-day on Friday, the consolidation ended, as the pair dropped at 12:30 GMT. At that time the US monthly employment data sets were released and revealed that less than expected US citizens found jobs in May. This resulted in a decline to the support zone below the 109.40 level.
Economic Calendar
On Thursday, the US Consumer Price Index, US Core Consumer Price Index and the US Unemployment Claims are set to be released exactly at 12:30 GMT. Most likely, all USD asset and pair moves from 12:30 to 12:35 could be attributed to these data sets.
The rate has moved from 8.9 to 44.4 pips during the release of the CPI since January 2021, and 7.4 to 21.7 pips on the release of the US Unemployment claims since May 6.
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
During Friday's US trading hours, the USD/JPY stood at the support of the June low levels at 109.33/109.36.If the low levels provide support and the rate surges, it would immediately test the resistance of the weekly simple pivot point at 109.56 and the 200-hour simple moving average. A breaking of these levels could result in the rate reaching the 100-hour simple moving average at 109.74 and afterwards the 55-hour simple moving average near 109.90.
On the other hand, if the June low levels are passed, the rate would aim at the 109.00 level and the weekly S1 simple pivot point at 108.91.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the pair is surging in the borders of a channel up pattern, which has guided it since the middle of April. In the meantime, the rate has additional support from the 55-day simple moving average at 109.20.In the case of the channel holding and the rate surging in its borders, a potential target would be the 2020 high zone near the 112.00 level.
Daily chart
On Friday, traders on the Swiss Foreign Exchange were 67% short on USD/JPY, as 67% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were almost neutral, as 54% were to buy.