On Monday, the decline of the USD/JPY continued, as the pair reached the 104.00 level. This level provided support and caused a pause of the decline.
Economic Calendar
Wednesday is a major day for other data releases. Throughout the whole day the Markit institute is set to publish Manufacturing and Services Purchasing Managers Indices. The indices are the result of a major survey of firm representatives.
At 13:45 the US PMIs will be released.
On Thursday, as accustomed, at 12:30 GMT, the US weekly Unemployment Claims could cause a move.
The week will end with a possible minor move from the US Durable Goods Orders at 12:30 GMT.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
On Friday, the USD/JPY currency pair touched the 104.30 level. During today's morning, the pair was testing the monthly S2 at 104.08.Given that the exchange rate remains under pressure of the 55– and 100-hour SMAs in the 104.60/104.90 area, it is likely that some downside potential could prevail. Note that the rate could gain support from the weekly S1 at 103.84.
However, if the given support level holds, it is likely that the US Dollar could trade sideways against the Japanese Yen within the following trading session.
Hourly Chart
On the daily candle chart, the pair has passed the July low level of 104.20. There are no longer historical low levels nearby, which could stop the rate's drop. The Yen continues to strengthen against the USD.
Daily chart
On Friday, traders of the Swiss Foreign Exchange were neutral, as 50% of all open position volume was in short positions.
By the middle of Monday's GMT trading hours, the sentiment was 57% long.
Meanwhile, trader set up pending orders in the 100-pip range were 74% to buy.