The rate aimed for the low level of 109.17, which it did not reach, as the additional support of the 200-hour SMA approached and caused a surge.
On Friday, the currency exchange rate was trading flat around 109.35 and was expected to get squeezed between the 200-hour SMA from below and the 55 and 100-hour SMAs from above.
This week, the pair could be impacted only by one data release. On Friday, the US Final GDP is set to be published at 13:30 GMT. However, since September 2018, the USD/JPY has moved only from 6.3 to 8.9 pips on the announcements.
Next week, the US Durable Goods Orders on Monday at 13:30 GMT could cause a move.
Meanwhile, next week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 23.12-27.12 Event Historical Reactions
USD/JPY short-term daily review
Note that the exchange rate is pressured by the 55– and 100-hour moving averages, currently located circa 109.45. This, it is unlikely that some upside potential could prevail in the market.Also, note that the currency pair could gain support from the 200-hour moving averages, currently located at 109.32. Thus, if the given moving averages hold, it is likely that the pair could consolidate in the short term.
Hourly Chart
On the daily candle chart, the pair has bounced off the resistance of a 50.00% Fibonacci retracement level at 109.60.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Tuesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
The proportion slightly changed on Friday, as 71% was short.
Meanwhile, trader set up pending orders were neutral. In the 100-pip range 50% of pending orders were to sell and 50% were to buy.