The US Dollar declined by 35 pips or 0.31% against the Japanese Yen on Monday. The currency pair breached the 55-, 100– and 200– hour SMAs during yesterday's trading session.
Economic Calendar
On Tuesday, the US ISM Services Purchasing Managers Index release at 14:00 GMT could cause a minor move on USD pairs. However, note that during most times the event does not cause an increase of volatility.
On Wednesday, at 18:00 GMT, the Federal Open Market Committee is set to publish its Meeting Minutes. Note that it will be just the meeting minutes for the previous meeting. There is no rate announcement or statement being published. Namely, the meeting minutes will have more detailed information about the previous decision of the Federal Reserve.
On Thursday, the US Unemployment Claims at 12:30 GMT could cause a minor move on USD pair and commodity price charts.
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
All things being equal, the exchange rate is likely to continue to edge lower during the following trading session. The potential target for the USD/JPY pair will be near the weekly support level at 110.46.On the other hand, the currency exchange rate might reverse from the support line at 110.80 and aim at the 55– hour simple moving average at 111.17 within this session.
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 the pair respects round exchange rate levels. The 110.50 has served as support. The 111.00 level has provided both support and resistance.
Daily chart
Since Friday, traders on the Swiss Foreign Exchange were 72% short on USD/JPY, as 72% of open position volume was in short positions.
On Tuesday, the situation changed, as the sentiment was 70% short.
Meanwhile, on Monday, trader set up pending orders in the 100-pip range around the rate were 61% to buy. On Tuesday, the orders were 69% to buy.