The USD/JPY currency exchange rate made an attempt to pass the post Pfizer vaccine surge high. The pair failed at this and returned to trade below 105.50.
In the meantime, the 55-hour simple moving average had caught up with the rate.
Economic Calendar
On Thursday, at 13:30 GMT USD pairs could move because of the release of the US Consumer Price Index and the Unemployment Claims. The rate could move up to 10 pips on the announcement.
On Friday, the US Producer Price Indices are scheduled to be released at 13:30 GMT. The USD/JPY has moved from 4.7 to 14.8 pips during the release of the PPIs.
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
It is likely that the exchange rate could gain support from the 55-hour moving average near 105.33 and trade upwards in the short term. In this case the rate could target the weekly R2 at 106.15.Meanwhile, if the predetermined psychological level holds, the currency pair could continue to trade sideways, supported by the Fibo 23.60% at 105.03.
Hourly Chart
On the daily candle chart, the rate is testing the resistance line of the August, September and October high levels. This trend line was the resistance of the previously broken descending triangle pattern.
In the meantime, note that the rate attempted to pass this trend line in late August and failed to the resistance of the 100-day simple moving average. The SMA was located at the 105.80 level, on Thursday.
Daily chart
On Thursday, on the Swiss Foreign Exchange 55% of volume was in short positions.
By the middle of Wednesday's trading, the sentiment was 51% short.
In the meantime, trader set up pending orders in the 100-pip range around the rate were 51% to sell the pair.
The orders were 64% to sell on Wednesday.