The USD/JPY currency exchange rate has continued to trade sideways between 105.00 and 105.50 since the fundamental surge that occurred on Monday.
In regards to the near term future, the rate was expected to receive support from the 55-hour SMA.
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 some upside potential could prevail in the market, as the exchange rate could gain support from the 55-hour moving average near 105.00. In this case the rate could gain support from the weekly R2 at 106.15.Meanwhile, if the given psychological level holds, the currency pair could trade downwards in the short term. The pair could gain support from the 100– and 200-hour SMAs, as well the weekly PP in the 103.98/104.50 range.
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 105.85 level, on Tuesday.
Daily chart
On Tuesday, 50% of volume was in long and 50% 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 64% to sell the pair.