The USD/JPY has remained below the 110.00 level. In the meantime, the pair has gained support of the 55- and 100-hour moving averages in the 109.80 area.
In general, it was expected that another attempt to reach the 110.20 level was about to occur.
Economic CalendarThis week's event have been analysed.
On Thursday, the US CPI data sets are set to be published at 13:30 GMT. The USD/JPY has moved from 8.2 to 16.3 pips because of the release.
On Friday the US Retail Sales data will be out also at 13:30 GMT. This event has caused moves on the USD/JPY pairs since September 2019 from 8.7 to 25.4 base points.
Read More: 10.02.-14.02 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair consolidated in the 109.80 area. During Tuesday morning, the pair raised to the 109.95 level.Note that the exchange rate is supported by the 55– and 100-hour SMAs in the 109.80 area. Thus, some upside potential could prevail in the market, and the rate could target the 110.20 level.
However, if the given support does not hold, it is likely that some downside potential could prevail in the market. In this case it is unlikely that the pair could decline below the Fibo 50.00% at 109.58.
Hourly Chart
On the daily candle chart, the rate has left below it the daily simple moving averages. This factor indicates that the rate is overbought.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
Since Monday, 74% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 67% of pending orders were to sell and 33% were to buy.