USD/JPY traders short the decline

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The decline of the USD/JPY has continued, as the 134.50 level provided enough resistance for the pair to resume its decline and reach a new low level. Namely, on Monday morning the rate was trading below 132.50 and was expected to reach 132.00.

Economic Calendar



On Wednesday, the US ISM Services PMI at 14:00 GMT might impact the pair through the value of the US Dollar.

On Friday, one of the top events of the month will take place. At 12:30 GMT, the US employment data sets are scheduled to be released. The release will consist of the US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate.

Hourly Chart
If the US Dollar declines against the Japanese Yen below the 132.00 level, note that support could be looked for in the 131.50 level and the weekly S1 simple pivot point at 131.32. Afterwards, the 131.00, 130.50 and 130.00 levels might act as support, prior to the rate reaching the lower trend line of a recently spotted channel down pattern.

On the other hand, a recovery of the currency pair might encounter resistance in the 132.50 level and the 133.00 mark, which is being crossed by the upper trend line of the mentioned channel pattern.

USD/JPY daily chart's review

On the daily candle chart, the rate has reached the combination of a high and low level zone at 131.25/132.00 and the 100-day simple moving average. Further below, note the May low level range at 126.40/126.95.

Daily chart




Traders are short

On Monday, on the Swiss Foreign Exchange, traders were 72% short as that amount of open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 64% to sell the USD against the JPY.

On Friday, open positions were 73% short and pending orders were 52% to sell.

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