After the sharp surge that was experienced on Monday, the USD/JPY currency exchange rate began to trade between the resistance of the 100-hour SMA and the support of the 55-hour simple moving average.
On Tuesday morning, the SMAs were located at 104.70 and 104.50.
Economic Calendar
Wednesday is a major day for other data releases. Throughout the whole day the Markit institute is set to publish Manufacturing and Services Purchasing Managers Indices. The indices are the result of a major survey of firm representatives.
At 13:45 the US PMIs will be released.
On Thursday, as accustomed, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tested the 100-hour moving average near 104.80. During Tuesday morning, the pair continued to test the given moving average.If the predetermined resistance holds, it is likely that some downside potential could prevail in the market. In this case the exchange rate could gain support from the monthly S2 at 104.08.
Meanwhile, note that the rate could gain support from the 55-hour SMA near 104.50. Thus, the pair could trade sideways between the given support and the resistance level formed by the weekly PP, the monthly S1 and the Fibo 23.60% at 105.00.
Hourly Chart
On the daily candle chart, the pair has passed the July low level of 104.20. There are no longer historical low levels nearby, which could stop the rate's drop. The Yen continues to strengthen against the USD.
In the meantime, the daily simple moving averages have remained far above the rate. It indicates that the rate is oversold on the daily candle chart.
Daily chart
Since Monday, traders of the Swiss Foreign Exchange were long, as 57% of all open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were 52% to buy.
The orders were 74% to buy on Monday.