On Tuesday morning, the USD/JPY attempted to pass the 107.60 level. However, the pair failed to pass it and reached down to the technical support levels near the 107.30 mark.
Future forecasts were based upon what would happen at the support levels.
Economic Calendar
In regards to the USD/JPY during this week, there are a couple of scheduled macroeconomic data releases that could impact the currency exchange rate.
First of all note the US Retail Sales on Tuesday at 12:30 GMT. This event has caused reactions from 8.7 to 17.7 pips.
On Thursday, the US Unemployment Claims at 12:30 GMT will be discussed by most market participants. However, this release usually causes moves below ten pips.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
It is likely that the exchange rate could gain support from the 55– and 100-hour SMAs, as well the monthly PP in the 107.25 area. Thus, the rate could trade upwards in the short term.Meanwhile, note that the currency pair could face the resistance formed by the weekly PP and the 200-hour SMA near 107.90. If the given resistance holds, it is likely that the pair could consolidate in the short run.
Hourly Chart
On the daily candle chart, it was previously noted that the passed daily simple moving averages could start to provide technical resistance.
On Friday, the 55-day SMA began to do so, as it acted as a resistance level near the 107.60 level.
Daily chart
Read More: Technical Analysis
Traders continue to short USD/JPY
Since Monday, on the Swiss Foreign Exchange 56% of open position volume was in short position.
Meanwhile, 51% of set up pending trade orders in a 100-pip range around the exchange rate were set to sell.
Previously, 58% of orders were to buy