The decline of the USD/JPY currency exchange rate has continued, as on Monday, the pair touched the 104.40 level.
Meanwhile, the rate had passed all technical resistance levels, which could provide support as low as 103.39.
Economic Calendar
Notable data releases start on Tuesday. At 13:30 GMT, expect the US Retail Sales data sets to slightly increase USD volatility.
On Thursday, expect the usual US Unemployment Claims at 13:30 GMT.
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
The USD/JPY currency pair continued to trade downwards. During Monday morning hours, the pair pierced the weekly PP at 104.53.It is likely that some downside potential could prevail in the market, as the exchange rate remains under pressure of the 55– and 100-hour SMAs, as well the Fibo 23.60% in the 105.00 area.
In the meantime, the currency pair could gain support from the weekly PP. In this case the pair could target the psychological level at 105.50 within the following trading session.
Hourly Chart
On the daily candle chart, the rate bounced off 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, but failed due to the resistance of the 100-day simple moving average. The SMA was located at the 105.75 level. It could continue to push the rate down.
Daily chart
Since Friday, on the Swiss Foreign Exchange 56% of volume was in short positions.
On Monday, trader set up pending orders in the 100-pip range around the rate were 58% to buy the pair.
The orders were 62% to buy on Friday.