On Monday, the US Dollar plunged by 86 pips or 0.78% against the Japanese Yen. The currency pair tested the lower boundary of a descending channel pattern at 109.18 during Monday's trading session.
Economic Calendar
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
Everything being equal, the USD/JPY exchange rate is likely to continue to trend in the descending channel pattern during the following trading session. The potential target for sellers would be near the 109.00 level.However, bearish traders might find support at 109.18 during Tuesday's trading session.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the exchange rate breached the support of the 55-day simple moving average, which was located at the 109.80 level.Meanwhile, theUSD/JPY currency exchange rate has found support at the 100- day SMA at 109.50.
Daily chart
Read More: Technical Analysis
Traders are short
On Tuesday, traders on the Swiss Foreign Exchange were 65% short on the USD/JPY currency pair.
Meanwhile, SWFX traders set up pending orders in the 100-pip range around the currency exchange rate were 52% to buy.