On Monday, the USD/JPY currency exchange rate was testing the combined support of the 55 and 100-hour simple moving averages and a monthly pivot point at 105.35.
In the meantime, the rate faced the resistance of the weekly simple pivot point at 105.44 and the psychological resistance of the 105.50 mark.
Economic Calendar
On Thursday, the weekly US Unemployment Claims will be out at 12:30 GMT.
On Friday, the US Markit Flash Services and Manufacturing PMIs could cause a move from 6.2 to 22.8 pips.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
During Monday morning hours, the USD/JPY currency pair tested the weekly PP at 105.44.If the predetermined resistance level holds, it is likely that a reversal south could occur, and the exchange rate could target the psychological level at 105.20 within the following trading session.
Meanwhile, note that the rate could gain support from by the 55– and 100-hour SMAs, as well the monthly PP circa 105.35. Thus, the pair could try to exceed the 200-hour moving average near 105.55 in the short run.
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.
The sentiment was 68% short on Monday.
Meanwhile, trader set up pending orders in the 100-pip range were 57% to buy.