Since Wednesday, the USD/JPY has continued to bounce off support levels in the 104.20/104.00 zone.
At mid-day on Friday, the rate was once again heading higher after bouncing off the mentioned support.
Economic Calendar
Next week, US Elections on Tuesday are bound to take away all attention from the macroeconomic data releases. However, there are things to note.
On Monday, the US ISM Manufacturing PMI could cause a notable move at 15:00 GMT. This event has caused USD/JPY moves from 7.2 to 27.7 pips.
On the day after the US Election, on Wednesday, the US ISM Non-Manufacturing PMI will be published at 15:00 GMT.
On Thursday, expect the weekly US Unemployment Claims to cause a minor move at 13:30 GMT. Throughout October, the event has caused USD/JPY moves from 2.9 to 8.5.
Later in the day, at 19:00 GMT, the US Federal Reserve will make a Rate Statement. Namely, the bank will react to the US Election and the following market reaction. Previously, the Fed had stated that they intend to stop a market crash, if one starts due to the election results.
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
The currency exchange rate has moved from 10.4 to 48.7 pips on the announcement since June.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
It is likely that the exchange rate could gain support from the 55-hour SMA near 104.40 and trade upwards in the short term. In this case the rate could target the 105.00 mark.Meanwhile, note that the currency pair could face the resistance provided by the 200-hour SMA near 104.70. If the given resistance holds, a reversal south could follow.
Hourly Chart
On the daily candle chart, the rate is testing the support zone of the large scale descending triangle pattern. If the support fails, in theory a sharp breakout downwards should occur.
On the other hand, the support holding, could result in the pair retracing back up to the resistance levels near the 105.00 mark.
Daily chart
On Friday, traders of the Swiss Foreign Exchange were neutral, as 53% of all open position volume was in long positions.
In the meantime, trader set up pending orders in the 100-pip range around the rate were 62% to buy the pair.