At mid-day on Monday, the USD/JPY was testing the resistance of the zone near the 103.70 level. Future forecasts were based upon whether or not this level holds.
In the meantime, note that the rate had pierced the support of three hourly simple moving averages and a supporting trend line.
Economic Calendar
On Thursday, at 13:30 GMT, the US Jobless Claims could cause a minor move on all USD pairs and assets that are traded in US Dollars.
USD/JPY short-term daily review
In the near term, the rate was expected to test the resistance of the zone near 103.70. If this level fails to hold the rate down, the pair should reach for the 103.90 level, which kept the pair down in December 16 and 21.In the case of the resistance holding, the pair would look for support in the weekly simple pivot point at 103.58 and the hourly simple moving averages. However, take into account that the support of the SMAs was passed during the early morning hours of Monday's trading.
Hourly Chart
On the daily candle chart, the rate pierced the November low level of 103.20. Due to that reason new low levels could be reached.
However, in the aftermath of reaching a new low level, the pair has been consolidating by retracing back up. A retracement back up could reach for the 55-day simple moving average, which was located near the 104.30 mark.
Daily chart
Read More: Technical Analysis
Traders are long on USD/JPY
On Monday, on the Swiss Foreign Exchange 71% of volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 57% to sell.