On Thursday, the USD/JPY passed the resistance of the 55-hour simple moving average in a sharp move that quickly reached the 104.75 level. At mid-day on Thursday, the SMA was expected to provide support.
In the case of the rate surging, the pair could reach the resistance cluster that surrounds the 105.00 mark.
Economic Calendar
On Thursday, at 13:30 GMT the US weekly Unemployment Claims will be published. The USD/JPY has recently moved from 3.3 to 10.4 pips on the publications.
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
It is likely that the exchange rate could gain support from the 55-hour SMA near 104.60. Thus, some upside potential could prevail in the market, and the rate could target the 105.40 level.Note that the currency pair would have to exceed the resistance area formed by the 100– and 200-hour SMAs, as well the Fibo 23.60% and the weekly PP in the 105.00/105.26 range. Thus, a reversal south could occur.
Hourly Chart
On the daily candle chart, the 100-day simple moving average provided the rate with support at 104.40. This level could push the rate up.
Daily chart
On Wednesday, on the Swiss Foreign Exchange 61% of open position volume was in short positions.
On Thursday, the sentiment was 60% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 62% to buy.