Yesterday, the USD/JPY currency pair declined below the 107.40 level.
The pair could gain support from the 100-hour SMA and the Fibo 38.20% and reverse north in the nearest future.
Economic Calendar
This week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, the US PPI on Wednesday and the US Retail Sales on Friday are being released at 12:30 GMT.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair traded downwards. During Wednesday morning, the pair declined to the 107.00 mark.
On the one hand, it is likely that the exchange rate could gain support from the 100-hour SMA and the Fibo 38.20% in the 106.90 area. Thus, the rate could reverse north and re-test the resistance level formed by the weekly R2 and the monthly PP at 107.65.
On the other hand, the currency pair could be pressured by the 55-hour SMA and the weekly R1 and the 107.25 area. If the given support does not hold, the pair could decline to the weekly PP at 106.60.
On the daily candle chart, the exchange rate gained support from the monthly S1 at 105.40.
Meanwhile, the 55-, 100- and 200-day moving averages formed the resistance area in the 107.70/108.25 range.
Daily chart
On the one hand, it is likely that the exchange rate could gain support from the 100-hour SMA and the Fibo 38.20% in the 106.90 area. Thus, the rate could reverse north and re-test the resistance level formed by the weekly R2 and the monthly PP at 107.65.
On the other hand, the currency pair could be pressured by the 55-hour SMA and the weekly R1 and the 107.25 area. If the given support does not hold, the pair could decline to the weekly PP at 106.60.
Hourly Chart
On the daily candle chart, the exchange rate gained support from the monthly S1 at 105.40.
Meanwhile, the 55-, 100- and 200-day moving averages formed the resistance area in the 107.70/108.25 range.
Daily chart
Read More: Technical Analysis
Traders are neutral on USD/JPY
On Wednesday, trader open position volume on the Swiss Foreign Exchange was 50% long.
Traders had been almost neutral since Tuesday.