Since the middle of Tuesday's trading, the USD/JPY has been trading in limbo around the 110.50 level. The rate has been kept down by the 55 and 200-hour simple moving averages. In the meantime, support was being provided by the 110.45 level.
Economic Calendar
On Thursday, the US weekly Unemployment Claims at 12:30 GMT could cause a minor USD move. The rate has moved from 7.4 to 20.8 pips on the release since May 27.
Later on at 14:00 GMT, the ISM Manufacturing PMI is likely going to impact the value of the US Dollar. This event has caused 5.0 to 19.4 pips during the releases since February 1.
On Friday, at 12:30 GMT, all USD traded assets and currency pairs are bound to move due to the monthly US employment data. The data release will consist of US Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
The USD/JPY has moved 21.1 to 66.4 pips on the release since February 2021.
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
In the case that the rate declines, it could reach the 110.00 level. Note that the 110.00 level was being strengthened by the weekly S1 simple pivot point.On the other hand, the rate could pass the resistance of the weekly simple pivot point at 110.56, the 55 and 200-hour simple moving averages near 110.60 and the 100-hour SMA at 110.67. If these levels are passed, the pair could reach for the June high levels above the 111.00 mark.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate remains consistent with the channel up pattern, which has guided the rate since the middle of April. 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.Meanwhile, it can be spotted that, despite piercing them, the pair respects round exchange rate levels.
Daily chart
Since Monday, traders on the Swiss Foreign Exchange were 72% short on USD/JPY, as 72% of open position volume was in short positions.
On Tuesday, 73% of open position volume was in short positions
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 76% to buy.
The orders were 68% to buy on Tuesday.