The USD/JPY currency exchange rate bounced off the 114.70 level, which is the 2017 November high level, on Tuesday. This resulted in a decline, which one by one passed the support of the 55, 100 and 200-hour simple moving averages. During Thursday European evening hours, the pair had reached the support of the weekly simple pivot point at 113.64.
Meanwhile, it was spotted that the recent decline has occurred in a rather small channel down pattern. The pattern could remain intact in the short term future.
Economic Calendar
At 13:45 GMT on Friday, the week's notable events will end with the publication of the US Manufacturing and Services PMIs. The USD/JPY has moved has moved from 6.5 to 11.9 pips allegedly due to the release since May 21.
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
If the rate declines, it would test the support of the weekly simple pivot point at 113.64. A passing below the pivot point would only have the support of the mentioned channel down pattern's lower trend line.On the other hand, a surge would first test the pattern's resistance line. Afterwards, the 55 and 100-hour SMAs could act as a resistance near 114.20. Above the 114.20 level, the 114.40, 114.50 and 114.70 levels could provide resistance, as they have done in the recent past.
Hourly Chart
USD/JPY daily chart's review
The 114.40/114.75 zone is the resistance zone of the late 2017 and 2018 high levels. This zone appears to have started to keep the rate down.Most recently, it appears that the 2017 November high level was strong enough to cause a decline.
Daily chart
On Thursday, on the Swiss Foreign Exchange, traders were short, as 74% of open position volume was in short positions.
On Wednesday, as 71% were short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 57% to buy.