On Monday, the USD/JPY was approaching the support of a weekly PP and the 100-hour SMA near the 111.15 level.
If this level keeps the rate up, it could once again test the 112.20 level.
Economic CalendarDuring the week there are no notable events that might impact the currency exchange rate. However, some economic calendars have US events listed as high impact.
On Thursday, at 15:30 GMT the US Durable Goods Orders are set to be published. This event has caused moves from 3.9 to 9.4 pips since August.
Moreover, the 9.4 pip move was an anomaly caused by the simultaneous release of other data together with the Durable Goods orders. Without it, the range is from 3.9 to 7.3 pips.
At the same time, the US Preliminary GDP is scheduled to be published. This is the other data set that together with the Durable Goods orders caused a 9.4 pip move. Without the other data, the GDP has caused moves from 2.8 to 9.6 pips.
The week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 24.02-28.02 Event Historical Reactions
USD/JPY short-term daily review
Note that the exchange rate is squeezed by the 55– and 100-hour SMAs, located near 111.80 and 111.15 respectively. Thus, the rate could consolidate in the short term.However, if the 100-hour SMA does not hold, it is likely that some downside potential could prevail in the market. In this case it is unlikely that the rate could decline below the 200-hour SMA near 110.50.
Hourly Chart
On the daily candle chart, the rate has confirmed the 112.20 level, as a resistance level. By zooming out, one can observe that the pair bounced off this level two times in 2019.
Daily chart
Read More: Technical Analysis
Traders short USD/JPY
Since last Tuesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 53% of pending orders were to sell and 47% were to buy.
Previously, the orders were 70% to sell on Friday.