By trading sideways the USD/JPY has broken the support of a medium scale channel up pattern.
In addition, the rate has signalled that the 55-hour simple moving average cannot push it higher.
Meanwhile, the rate was being approached by the support of the 100-hour simple moving average, which could end the sideways trading.
On Monday, the US Census Bureau released the US Retail Sales data, which came lower-than-expected of -0.2% compared with forecast 0.3%.
According to experts, the US retail sales surprisingly declined in February due to slumps in grocery stores and building materials. The weather played an important role in February sales. There was record rainfall in the Southeast, winter storms in the North, record snowfall and cold temperatures in the Northwest. Also, this decline may indicate future slowdown for the US economy in the first quarter.
US employment data on Friday
Until Friday there are no notable macroeconomic data releases scheduled to take place.On Friday, at 12:30 GMT the US and Canadian employment data sets will be published. The US data is expected to impact all USD pairs.
Meanwhile, the Canadian data should cause a much bigger impact on all CAD pairs. Most complicated price movements will happen on the USD/CAD.
USD/JPY short term daily review
During Wednesday's trading session, the currency exchange rate broke the previously drawn pattern to end the day at 111.30. On Thursday, the rate passed through the support level of the 55-hour SMA to trade at the 111.40 mark.In regards to the near-term future, most likely, the 100-hour SMA and the support level of the weekly R1 at 111.32 mark will support the USD/JPY to trade sideways at the 111.20 level.
Note, the chart was reviewed to make changes to the previously drawn patterns.
Hourly Chart
On the daily chart it can be observed that the rate is being kept down by the 200-day simple moving average.On Tuesday this technical resistance was holding. However, on Wednesday it had been pierced, as the currency exchange rate had reached above the 111.50 level.
Due to that reason at the moment most attention should be given to the daily chart.
Daily chart
Traders are shorting the USD/JPY, as 62% of the total open position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were neutral. 52% of orders were set to sell.
In general, it could be observed that the short term oriented traders of the Swiss Foreign Exchange had already opened short positions in the expectations of a decline.