On Monday, the USD/JPY currency exchange rate found support in the combination of 55 and 100-hour simple moving averages.
During the second half of the day's trading, the pair was expected to reach for the monthly pivot point at 107.65.
Economic Calendar
Markit is going to publish the US Flash Manufacturing PMI survey results on Thursday, May 21, at 13:45 GMT.
USD/JPY short-term daily review
From a theoretical point of view, it is likely that some upside potential could prevail in the market. In this case the exchange rate could face the resistance level formed by the weekly R1 and the monthly PP in the 107.65 area.
If the 107.65 area holds, the rate could decline down to the support of the SMAs and a pivot point at 107.13.
On the other hand, in the case of passing the 107.65, the pair could reach for the 108.00 mark.
On the daily candle chart, the exchange rate is being kept down by the 55-day simple moving average at the 107.44 level. It needs to be passed for the rate to reach for the 107.65 mark.
Daily chart
If the 107.65 area holds, the rate could decline down to the support of the SMAs and a pivot point at 107.13.
On the other hand, in the case of passing the 107.65, the pair could reach for the 108.00 mark.
Hourly Chart
On the daily candle chart, the exchange rate is being kept down by the 55-day simple moving average at the 107.44 level. It needs to be passed for the rate to reach for the 107.65 mark.
Daily chart
Read More: Technical Analysis
Traders are neutral on USD/JPY
Since Wednesday, trader open position volume on the Swiss Foreign Exchange was 50% long.
Traders have been neutral for almost two weeks.