The USD/JPY currency pair failed to surpass the psychological level at 110.00 once again.
The pair tumbled to 109.70. Note that the currency pair could gain support of the 200-hour SMA and reverse north in the short term.
Economic CalendarThis week's event have been analysed.
Today, the US CPI data sets are set to be published at 13:30 GMT. The USD/JPY has moved from 8.2 to 16.3 pips because of the release.
On Friday the US Retail Sales data will be out also at 13:30 GMT. This event has caused moves on the USD/JPY pairs since September 2019 from 8.7 to 25.4 base points.
Read More: 10.02.-14.02 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tumbled to the 109.85 level. During Thursday morning, the pair declined to 109.70.It is likely that the exchange rate could gain support of the 200-hour SMA near 109.60. Thus, a reversal north could occur in the nearest future. In this case the rate would have to surpass the resistance formed by the 55– and 100-hour SMAs in the 109.80 area.
If the given resistance holds, it is likely that the US Dollar could trade sideways against the Japanese Yen in the short term. Otherwise, the currency pair could manage to surpass the 110.00 level.
Hourly Chart
On the daily candle chart, the rate has left below it the daily simple moving averages. This factor indicates that the rate is overbought.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
On Thursday, 71% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 65% of pending orders were to sell and 35% were to buy.