On Thursday, the 55-hour simple moving average was pushing the USD/JPY currency exchange rate through the support of the 110.00 level.
During the second half of the day's GMT hours the pair reached the 109.70 level.
Economic CalendarNo more relevant data for the pair is scheduled to be released during this week.
However, next week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 02.03-06.03 Event Historical Reactions
USD/JPY short-term daily review
On Thursday morning the USD/JPY currency exchange rate was once again testing the support of the 110.00 level.In general, the rate was expected to trade above the support until the resistance of the 55-hour SMA approaches the rate and pushes it through the 110.00 mark.
On the other hand, the 55-hour SMA might get broken. In this scenario, the rate would have no resistance to surge up to the 110.70 level, where the 100 and 200-hour SMAs are located together with the 61.80% Fibonacci retracement level.
Hourly Chart
On the daily candle chart, the rate is retreating back down to the support of the daily simple moving averages. By retracing back down the rate is getting rid of the overbought pressure that appeared during the February 19 and 20 surge.
In addition, a 50.00% Fibonacci retracement level was located at the 109.60 level. This Fibo level was being strengthened by the 55-day simple moving averages.
Daily chart
Read More: Technical Analysis
Short sentiment decreases
On Tuesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions. On Wednesday, the sentiment decreased to 68% short.
By the middle of Thursday's trading, the sentiment was 63% short.
Meanwhile, in the 100-pip range 51% of pending orders were to buy and 49% were to sell.
It can be assumed that a part of short sellers has been taken profits.