On Tuesday, the USD/JPY traded above the 105.00 level, which appeared to provide support to the currency exchange rate in the aftermath of the prior jump.
The USD/JPY currency exchange rate jumped 236 pips or 2.29%. The surge was caused by news from a public company.
Pfizer announced that its Covid-19 vaccine was effective in more than 90% of cases in a large scale study.
Economic Calendar
On Thursday, at 13:30 GMT USD pairs could move because of the release of the US Consumer Price Index and the Unemployment Claims. The rate could move up to 10 pips on the announcement.
On Friday, the US Producer Price Indices are scheduled to be released at 13:30 GMT. The USD/JPY has moved from 4.7 to 14.8 pips during the release of the PPIs.
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
The surge of the currency exchange rate bounced off the resistance zone, which kept the rate down in the second part of October. Namely, the 105.65/105.75 zone is providing resistance. By the middle of Tuesday's European trading hours, the rate was expected to test this resistance.In the case of the resistance failing to keep the rate down, the pair could aim first at the 106.00 mark and afterwards the weekly R2 simple pivot point at 106.15.
On the other hand, if the resistance holds, the pair would trade sideways near the 105.50 level until the support of the hourly simple moving averages approaches the pair.
Hourly Chart
On the daily candle chart, the rate is testing the resistance line of the August, September and October high levels. This trend line was the resistance of the previously broken descending triangle pattern.
In the meantime, note that the rate attempted to pass this trend line in late August and failed to the resistance of the 100-day simple moving average. The SMA was located at the 105.85 level, on Tuesday.
Daily chart
On Monday, traders of the Swiss Foreign Exchange were bullish, as 62% of all open position volume was in long positions. During Friday's GMT trading hours, the sentiment was 65% long.
On Tuesday, the long positions were gone, as traders had taken profits. Namely, 50% of volume was in long and 50% of volume was in short positions.
In the meantime, trader set up pending orders in the 100-pip range around the rate were 63% to sell the pair.