It was the needed info for the pair to start a move. It started to decline and by mid-Thursday the rate had almost reached the 140.50 level.
Economic Calendar
There are no notable events scheduled to occur this week.
USD/JPY hourly chart analysis
An extension of the ongoing decline is expected to be slowed down by the 140.50 level. Below 140.50, the rate is set to find support in the 140.00 mark and the weekly S1 simple pivot point at 139.87.On the other hand, a recovery of the US Dollar against the Japanese Yen is bound to encounter resistance in zones that previously acted as support. Namely, note the 140.95/141.20 and 141.85/142.05 ranges. In addition, the 141.85/142.05 range is strengthened by the 50 and 100-hour simple moving averages.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the USD/JPY face a resistance line that has kept the rate down since the pair booked the high level on November 12. Most recently, the trend line held and supported the combination of the 200-day SMA and the 144.60/146.00 zone.Regarding the future, if the 140.00 mark does not act as support, note the support and resistance range at 137.30/139.40.
Daily chart
Read More: Technical Analysis
Traders go short
Last week, the sentiment was 54% short.
On Wednesday, traders were 51% long and orders were 63% to sell the pair.
On Thursday, traders were 63% short. As the rate dropped, short positions were opened.
Meanwhile, pending orders in the 100-pip range around the pair were 70% to sell. Namely, more short positions could be opened in the near term future.