The USD/JPY reached the 23.60% Fibonacci retracement level at 105.03, as it was expected.
Afterwards, the Fibo caused a surge, which retraced back up to the resistance of the pivot point and 55-hour SMA near 105.35.
Economic Calendar
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT. Since September, the publication caused moves of 4.2 to 14.8 pips.
On Friday, the US Retail Sales data is capable of causing slight increases of above normal volatility. However, in most cases the market barely reacts to this data. Namely, there are no sudden asset price and exchange rate adjustments.
The USD/JPY has moved from 6.1 to 13.6 pips on the release.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
It is likely that the exchange rate could trade downwards due to the resistance formed the monthly PP and the 55-hour SMA near 105.35. In this case the rate could target the weekly S2 at 104.87.In the meantime, note that the currency pair could gain support from the Fibo 23.60%. If the predetermined support holds, the pair could trade sideways in the short term.
Hourly Chart
On the daily candle chart, the rate is ignoring the 55-day simple moving average, which was broken last week. Previously, the SMA kept the rate down for three months.
Daily chart
Since Wednesday, traders of the Swiss Foreign Exchange were short, as 67% of all open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range were 61% to buy.