The decline of the USD/JPY has experienced another sudden drop. On Friday, the rate dropped to the 102.00 level.
On Monday, the currency exchange rate traded sideways between the 102.70 and 102.00 level. The pair appeared to be consolidating the sharp decline.
Economic CalendarOn Wednesday, March 11, the US CPI and Core CPI will be published at 12:30 GMT. The USD/JPY had moved at the time of the release from 6.4 to 16.3 pips since October 2019.
Meanwhile, 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: 09.03-13.03 Event Historical Reactions
USD/JPY short-term daily review
At the previous trading session, the USD/JPY currency pair surpassed the 104.50 level. During Monday morning, the pair tumbled to the 102.00 mark.From the one hand, it is likely that some downside potential could continue to prevail in the market. In this case the exchange rate could target the weekly S3 at 100.48.
On the other hand, a reversal north could occur in the short term. In this case the currency pair could face the resistance level formed by the weekly S1 at 104.07.
Hourly Chart
On the daily candle chart, Dukascopy Analytics have marked the 100.00 level. This is the low level of 2016. Since 2016 this level has not been approached by the USD/JPY.
Meanwhile, take into account that the 2017 and 2019 low level of 104.60 was passed on Monday.
Daily chart
Read More: Technical Analysis
Long sentiment declines
Last week, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Monday's trading, the sentiment was 61% long.