The hourly simple moving averages did not manage to provide enough support for the USD/JPY currency exchange rate to pass the resistance of the 105.65 level.
On Friday, the rate had retreated to trade below the 105.00 mark.
Economic Calendar
On Friday, the US Producer Price Indices are scheduled to be released at 13:30 GMT. The USD/JPY has moved from 4.7 to 14.8 pips during the release of the PPIs.
Next week, notable data releases start on Tuesday. At 13:30 GMT, expect the US Retail Sales data sets to slightly increase USD volatility.
On Thursday, expect the usual US Unemployment Claims at 13:30 GMT.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
Since Thursday, the USD/JPY currency pair has been depreciating gradually.It is likely that the exchange rate could continue to trade downwards due to the resistance formed by the 55– and 100-hour moving averages near 105.20. The rate could target the weekly PP at 103.98.
In the meantime, note that the currency pair could gain support from the weekly R1 and the 200-hour SMA in the 104.65 area. Thus, the pair could trade sideways in the short run.
Hourly Chart
On the daily candle chart, the rate bounced off the resistance line of the August, September and October high levels. This trend line was the resistance of the previously broken descending triangle pattern.
In the meantime, note that the rate attempted to pass this trend line in late August, but failed due to the resistance of the 100-day simple moving average. The SMA was located at the 105.78 level, on Friday. It could continue to push the rate down.
Daily chart
On Thursday, on the Swiss Foreign Exchange 55% of volume was in short positions.
By the middle of Friday's trading, the sentiment was 56% short.
In the meantime, trader set up pending orders in the 100-pip range around the rate were 62% to buy the pair.
The orders were 51% to sell on Thursday.