The decline of the USD/JPY found support in the 105.45 level and began a recovery, which retested the resistance of the monthly pivot point at 106.09.
On Monday, the rate had bounced off the monthly resistance and began a decline. Up to the middle of the day's trading, the pair was finding support in the 100-hour simple moving average.
Economic Calendar
As the last week of the month, the following week is expected to be a quiet one. However, there are events that should be watched in the case a sharp move occurs.
On Wednesday, at 12:30 GMT traders should watch the release of the US Durable Goods Orders data. The event is capable of causing volatility increases above average level.
On Thursday, the US Preliminary GDP and the US Unemployment claims are set to be published. Due to these events usually not being released at the same time, the past reactions need to be combined. Namely, in the case of the same direction surprise the volatility pips need to be added one to another. On the other hand, different results shown by each data set could cancel one another out.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
On Friday, the USD/JPY currency pair re-tested the monthly PP at 106.09. During today's morning, the pair was testing the 100-hour SMA near 105.70.If the given moving average holds, it is likely that a reversal north could occur, and the exchange rate could target the psychological level at 106.40.
Meanwhile, if the predetermined resistance holds, it is likely that the US Dollar could trade sideways against the Japanese Yen in the short run.
Also, it is unlikely that the rate could decline below the 105.40 mark due to the lower boundary of a medium-term ascending channel.
Hourly Chart
On the daily candle chart, take into account the resistance of the 55 and 100-day simple moving averages at 106.65 and 107.10.
Daily chart
Since Thursday, traders of the Swiss Foreign Exchange were neutral, as 52% of all open position volume was short.
On Monday, the sentiment was 55% short.
Meanwhile, trader set up pending orders in the 100-pip range were 53% to buy.
Previously, the orders were 58% to buy.