Since Wednesday morning, the USD/JPY currency exchange rate has been fluctuating around the 106.00 level. It was spotted that the rate had the support of the 105.94 level and the resistance of 106.09.
The rate could continue to trade sideways until it is approached by the hourly simple moving averages, which caused the breaking of the pivot point at 105.77.
Economic Calendar
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
In the near term future, the currency exchange rate could continue to trade around the 106.00 level until it is approached by the hourly simple moving averages.Namely, the first one to provide additional support most likely will be the 55-hour SMA. In the case of the 55-hour SMA pushing the rate up, the USD/JPY could reach for the pivot point at 106.22.
On the other hand, the 55-hour SMA might not succeed. In this scenario, the rate could continue to trade sideways until the 100 and 200-hour SMAs catch up.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the 55-day simple moving average, which kept the rate down since the middle of July.
However, the rate once pierced the SMA and was immediately stopped by the technical resistance of the 100-day SMA. On Thursday, the 100-day SMA was located near 106.50.
Daily chart
Since Wednesday traders of the Swiss Foreign Exchange were short, as 64% of all open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were 70% to sell.