Since the middle of Wednesday's GMT trading hours, the USD/JPY has traded almost sideways. However, the pair had begun to trade below the 107.50 mark. In the meantime, it could be spotted that the rate is being supported by the 107.00 level.
In regards, to the near term future, the rate was expected to trade between 107.00 and 107.50 until it gets pushed down by the 55 and 100-hour simple moving averages.
Economic CalendarDuring the week, historical data can be ignored, as the fundamental background has changed in a way that the data cannot help in making forecasts.
However, take a look at the list of previously notable events, as the markets will be looking at them to understand the impact of the coronavirus.
USD/JPY short-term daily review
It is likely that the 55– and 100-hour SMAs could push the exchange rate down. Note that the rate would have to surpass the support formed by the monthly PP, the weekly S1 and the Fibo 50.00% in the 106.70 area.If the given support holds, it is likely that the currency pair could continue to trade sideways. Otherwise, it is likely that the pair could target the psychological level at 106.00.
Hourly Chart
On the daily candle chart, the rate is trading near the daily simple moving averages, which provided resistance on Tuesday near the 109.00 level. Note that they continue to strengthen resistance at 109.00 and at 108.30.
Daily chart
Since Monday, 62% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
The sentiment changed on Wednesday, as 64% of open position volume was short. Some traders opened short positions, as the rate bounced off the 108.75 level.
These traders remained short on Thursday, as 63% of volume was short.