On Friday morning, the USD/JPY bounced off the combined resistance of the 55, 100 and 200-hour simple moving averages and the 110.00 round exchange rate level. Meanwhile, note that the rate ignored the support and resistance of the weekly simple pivot point at 109.82.
Economic Calendar
On Friday, the rate could move due to the publication of the US Producers Price Index at 12:30 GMT.
USD/JPY short-term review
In the case that the rate declines, it could look for support near the 109.60 level. A support zone near this level has kept the pair up throughout September.On the other hand, a potential surge would once again test the resistance of the 110.00 level and the three simple moving averages. Above these levels, the 110.25 might provide additional resistance.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has once again broken out of the squeeze between the 55 and 100-day simple moving averages. The rate had been trading between the two technical levels since August 19. However, there were two break outs form the range on August 24 and September 1.Daily chart
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Short sentiment changes
On Friday, traders on the Swiss Foreign Exchange were 69% short on USD/JPY.
On Thursday, 66% of volume was short.
Meanwhile, since Thursday, trader set up pending orders in the 100-pip range around the rate were 52% to sell.