During Monday's European noon trading hours, the USD/JPY passed the support of the weekly simple pivot point, a lower trend line of a channel up pattern and the 55 and 100-hour simple moving averages. However, this did not result in a sharp decline, as the rate began to trade sideways.
Economic Calendar
The week of Christmas is set to have an early market closing on Thursday in many countries and reduced liquidity due to people being on holidays.
Namely, on Tuesday, the US Final GDP could cause volatility. The USD/JPY has moved 5.5 to 38.9 pips on the announcement since September 2019. However, the 38.9 move was an anomaly caused by the coronavirus in March. The usual range for the pair is 5.5 to 8.9 pips.
Last but not least, on Thursday, the US Durable Goods Orders and Core Durable Goods Orders data will be released. Minor moves of 3.3 to 11.6 pips have occurred on the announcements.
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
During Tuesday morning, the pair was testing the resistance formed by the weekly PP at 103.46. If the predetermined resistance holds, it is likely that some downside potential could prevail in the market. Note that the nearest support level—the weekly S1, is located at 102.77.Hourly Chart
On the daily candle chart, the rate has pierced the November low level of 103.20. Next target for the rate on the daily candle chart could be the 2020 low level of 102.00.
Daily chart
On Tuesday, on the Swiss Foreign Exchange 72% of volume was in long positions.
On Monday, the sentiment was 71% long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 50% to sell and 50% to buy the pair.