On Friday morning, the USD/JPY passed the support of the 100-hour simple moving average and the weekly simple pivot point at 105.62. This resulted in a sharp decline to the 105.30 mark.
In the near term future, the rate was expected to look for support in the 200-hour SMA at 105.20.
Economic Calendar
The week will end for the USD/JPY with the US PMIs at 14:45 GMT. The release could cause a move from 3.0 to 28.6 pips. However, the November 28.6 pip move appears to be an anomaly, as without it the range would be 3.0 to 7.6 pips.
Next week, only the US Preliminary GDP release on Thursday at 13:30 GMT could cause a notable sudden move.
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
On Friday morning, the USD/JPY passed the support of the 100-hour SMA and the pivot point at 105.62. This resulted in a sharp decline that was expected to look for support first in the 200-hour SMA at 105.20 and afterwards the 105.00 mark.If any of the mentioned support levels start a surge, the rate would test the combined resistance of the 55 and 100-hour simple moving averages and the pivot point in the 105.62/105.80 range.
On the other hand, if the USD/JPY declines below the support levels at 105.00, the rate would have no technical support as low as the pivot point at 104.36.
Hourly Chart
On the daily candle chart, note that the 200-day simple moving average failed to provide support to the rate at 105.50.
Meanwhile, on Tuesday it was spotted that the currency exchange rate has been surging in a channel up pattern since the start of 2021. The lower trend line of the pattern was supporting the 105.00 mark.
Daily chart
On Friday, on the Swiss Foreign Exchange 66% of open position volume was in short positions.
During Thursday's trading, the sentiment was 70% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 79% to buy.