On Wednesday, the USD/JPY currency pair was trading sideways in the 110.00 area.
The pair could face support of the 100-hour SMA at 109.76 and go upwards within the following trading session.
Read More: 13.01-17.01 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair consolidated at the 110.00 level. During Wednesday morning, the pair continued to trade sideways.Given that the exchange rate is supported by the 55– and 100-hour SMAs, it is likely that some upside potential could prevail. In this case the rate would have to surpass the resistance level formed by the weekly R1 and the monthly R2 at 100.25.
If the given resistance level holds, it is likely that the US Dollar could continue to consolidate against the Japanese Yen in the short run. On the other hand, the currency pair could decline to the monthly R1 at 109.47.
Hourly Chart
As apparent on the chart, the pair surpassed the resistance of the 50.00 Fibo and the trend line of the 2018 and 2019 high levels.
Given that the pair is supported by the 55-day SMA, it is likely that some upside potential could prevail in the market.
Daily chart
Read More: Technical Analysis
Traders go short on USD/JPY
On Wednesday, 74% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 75% of pending orders were to sell and 25% were to buy.