Since Friday, the USD/JPY currency pair has been consolidating at the 109.60 level.
Note that the pair is supported by the 55-hour SMA. Thus, some upside potential could prevail in the market.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
USD/JPY short-term daily review
During previous trading session, the USD/JPY currency pair consolidated at the 109.60 level. During Monday morning, the pair maintained its consolidation.Note that the exchange rate is supported by the 55-hour moving average, currently located at 109.51. In this case the rate could exceed the psychological level at 110.00.
On the other hand, the US Dollar could continue to consolidate against the Japanese Yen within the following trading session.
Also, it is unlikely that bears could prevail, and the currency pair could decline below the 100-hour SMA, currently located at 109.09.
Hourly Chart
As apparent on the chart, the pair faced the resistance of the 50.00 Fibo and the trend line of the 2018 and 2019 high levels.
Given that the pair is supported by the 55-day SMA, it is likely that some upside potential could prevail in the market.
Daily chart
Read More: Technical Analysis
Short sentiment continues to increase
On Monday, 73% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 86% of pending orders were to sell and 14% were to buy.