On Friday, the USD/JPY tested the resistance provided by the 100-hour moving average near 107.50.
During Monday morning hours, the pair continued to test the given resistance. If the given moving average holds, it is likely that some downside potential could prevail.
Economic Calendar
In regards to the USD/JPY during this week, there are a couple of scheduled macroeconomic data releases that could impact the currency exchange rate.
First of all note the US Retail Sales on Tuesday at 12:30 GMT. This event has caused reactions from 8.7 to 17.7 pips.
On Thursday, the US Unemployment Claims at 12:30 GMT will be discussed by most market participants. However, this release usually causes moves below ten pips.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
On Friday, the USD/JPY currency pair tried to exceed the resistance provided by the 100-hour SMA near 107.50. During today's morning, the pair was testing the given resistance.Note that the exchange rate could gain support from the 55-hour SMA near 107.10 and trade upwards in the short term. In this case the rate could face the resistance formed by the weekly PP, the monthly R1, the Fibo 50.00% and the 200-hour SMA in the 107.89/108.66 range.
Meanwhile, it is unlikely that bears could prevail in the market, and the currency pair could decline below the monthly S1 located at 106.56 mark.
Hourly Chart
On the daily candle chart, it was previously noted that the passed daily simple moving averages could start to provide technical resistance.
On Friday, the 55-day SMA began to do so, as it acted as a resistance level at the 107.63 level.
Daily chart
Read More: Technical Analysis
Traders continue to short USD/JPY
On Friday, on the Swiss Foreign Exchange 58% of open position volume was in short position.
On Monday, the short sentiment declined slightly and became 56%.
Meanwhile, 58% of set up pending trade orders in a 100-pip range around the exchange rate were set to buy.