The USD/JPY currency pair failed to surpass the psychological level at 110.00.
Given that the rate is supported by the 55- and 100-hour SMAs, it is expected that another attempt to reach the 110.20 level is about to occur in the nearest future.
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 tried to surpass the 109.90 level. During Wednesday morning, the pair jumped to 110.10.From the one hand, it is likely that the exchange rate could continue to extend gains within the following trading session. In this case the rate could reach the 110.20 level.
On the other hand, a reversal south could occur in the nearest future. In this case the currency pair could gain support of the 55– and 100-hour SMAs near 108.80.
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
On Wednesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 69% of pending orders were to sell and 31% were to buy.