The resistance levels that were reached on Wednesday near the 104.75 level held, it caused a decline, which by the middle of Thursday had almost reached 104.00.
During the decline, the rate passed the support of the 55, 100 and 200-hour SMAs and the simple pivot point at 104.21.
Economic Calendar
On Wednesday and Thursday, the markets are unlikely going to be impacted by macroeconomic data releases. On those days the ADP Non-Farm Employment Change, US Unemployment Claims and the US ISM Non-Manufacturing PMI are set to be published. All of these releases have not caused increases of USD volatility despite being discussed by the financial media.
On Friday, the US will publish monthly employment data. Namely, the Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings. The rate has moved from 10.4 to 26.3 pips on the announcement.
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
As the US markets were set to open on Thursday, the USD/JPY currency exchange rate was heading to the 104.00 mark.In theory, the decline should continue, as the 104.00 did not stop the rate's decline at the start of this week. A potential decline could reach the November 18 and 23 low level near 103.70.
However, the rate could find support in the 103.80 level, from which it reversed on December 30.
Hourly Chart
On the daily candle chart, one can observe that the rate faces the additional resistance of the 55-day simple moving average, which was located at the 104.84 level.
Daily chart
On Wednesday, on the Swiss Foreign Exchange 64% of volume was in long positions.
On Thursday, the sentiment was 70% long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 69% to buy the pair.