As expected, the USD/JPY continued to surge after breaking the resistance of the 104.20/104.35 zone. However, prior to reaching new high levels, the rate retraced to the 200-hour SMA.
During the middle of European trading hours, the currency exchange rate was trading in limbo around the 104.50 level.
Economic Calendar
The week is set to end with the US Producers Price Index on Friday, 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
From the one hand, it is likely that the exchange rate could continue to trade upwards in the short term. In this case the rate could face the resistance level formed by the weekly R1 at 104.75.From the other hand, a reversal south could occur in the nearest future. In this case the rate could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 104.15 range.
Hourly Chart
On the daily candle chart, one can observe that the rate faces the additional resistance of the 55-day simple moving average, which was located at the 104.75 level.
Daily chart
Since Tuesday, on the Swiss Foreign Exchange 65% of volume was in long positions.
On Monday, the sentiment was 66% long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 75% to sell the pair.