On Thursday, the USD/JPY traded in limbo around the 105.40 level. The pair was kept there by the resistance of the 105.50 mark.
The rate was expected to continue to trade sideways until it would be approached by the support of the 55-hour simple moving average.
Economic Calendar
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT.
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USD/JPY short-term daily review
From the one hand, it is likely that some upside potential could prevail in the market in the nearest future. In this case the exchange rate could face the resistance level—the weekly R1 at 105.76.From the other hand, it is likely that a reversal south could occur in the short term. In this case the rate could gain support from 55– and 200-hour SMAs, as well the weekly PP, the monthly S1 and Fibo 23.60% in the 105.00 area.
Hourly Chart
On the daily candle chart, the pair is retracing back up to the 55-day simple moving average, which on Thursday was located at the 106.00 level.
Daily chart
Since Monday, traders of the Swiss Foreign Exchange were long, as 57% of all open position volume was in long positions.
These positions have been profiting from the recent surge.
Meanwhile, trader set up pending orders in the 100-pip range were 71% to sell.
The orders were 65% to sell on Wednesday.