The recovery of the USD/JPY was stopped at GMT midnight from Thursday to Friday. At that time, the rate bounced off the resistance of the 55-hour SMA and began a decline.
On Friday morning, the SMA had pushed the pair down to the 104.60 mark.
Economic Calendar
On Friday, the US Markit Flash Services and Manufacturing PMIs could cause a move from 6.2 to 22.8 pips.
On Tuesday, the US Durable Goods Orders and Core Durable Goods Orders will be released at 12:30 GMT. This event has caused moves on the USD/JPY from 5.3 to 11.6 base points.
On Thursday, at 12:30 GMT two events will be released that the financial media will talk about. However, recently both of them have not caused notable moves.
The GDP has moved the USD/JPY from 9.2 to 21.1 pips since July 2019. Meanwhile, the Unemployment Claims since September 24 have caused 2.9 to 9.2 pip moves
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
At 09:00 GMT on Friday, the currency exchange rate passed the support of the weekly S2 simple pivot point at 104.62. Due to that reason the rate was expected to reach for the support of the 104.40 mark, which stopped the pair's recent fundamental drop.Afterwards, if the rate passes the 104.40 level, it would aim at the pivot points at 104.21 and 104.13.
On the other hand, the 104.40 could hold and cause a sideways consolidation until the 55-hour SMA approaches and pushes the rate down.
Hourly Chart
On the daily candle chart, the 104.20 level has been marked. Take into account that the late July and September declines of the rate reversed at the 104.20 and the 104.00 levels.
Daily chart
Since Thursday, traders of the Swiss Foreign Exchange were slightly short, as 54% of all open position volume was in short positions.
Previously, traders took profits, as the sentiment was mostly bearish at the start of the week. Namely, Dukascopy traders profited from the recent decline.
In the meantime, on Friday, trader set up pending orders in the 100-pip range around the rate were 55% to buy.