The 55-hour SMA failed to push the USD/JPY up. Instead, the SMA's support was passed. Moreover, the SMA began to provide resistance to the rate's attempted recovery.
By the middle of Thursday's European trading hours, the rate had retreated to a technical support cluster that was located at 104.20/25.
Economic Calendar
There are no more notable events scheduled for this week. However, one can research the events that already occurred.
In the meantime, note that the next week's event analysis is bound to be published in the Fundamental Analysis section by 18:00 GMT. On Friday, the usual short version for each pair will be added to the daily Trading Ideas publications.
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
On Wednesday, the USD/JPY currency pair depreciated gradually. During today's morning, the pair was testing the support formed by the 100– and 200-hour SMAs, as well the weekly PP near 104.20.If the predetermined support holds, a reversal north could occur. In this case the exchange rate could target the weekly R1 located at 104.80 in the nearest future.
Meanwhile, note that the rate is pressured by the 55-hour moving average near 104.40. Thus, some downside potential could prevail within the following trading session.
Hourly Chart
On the daily candle chart, one can observe that the rate paused its recovery after regaining back half of the losses suffered since November 12.
In the meantime, take into account that the resistance of the 105.00 level is strengthened by the 55-day simple moving average. However, this SMA did not properly hold in late August, early October and early November. It was pierced for a couple of trading sessions during these time periods.
Daily chart
Since Tuesday, on the Swiss Foreign Exchange 65% of volume has been in long positions.
The sentiment changed on Thursday, as 63% of volume was long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 62% to buy the pair.
The orders were 52% to buy on Wednesday.