On Thursday, the USD/JPY traded around the 106.00 level. In the meantime, support was provided by the 105.84 level and resistance was provided by the weekly R1 simple pivot point at 106.17.
Future scenarios were based upon whether or not the pivot point holds.
Economic Calendar
This week, only the US Preliminary GDP release on Thursday at 13:30 GMT could cause a notable sudden move.
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 Wednesday afternoon, the USD/JPY currency pair has been testing the resistance level—the weekly R1 at 106.17.If the predetermined level holds, it is likely that the exchange rate could reverse south in the nearest future. In this case the rate could decline to the support formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 105.50 area.
However, if the given resistance level does not hold, the currency pair could continue to extend gains in the short run. In this case the pair could target the 106.40/106.60 area.
Hourly Chart
On the daily candle chart, the channel up pattern, which captures the 2021 surge, has remained intact. The lower trend line supported the 105.00 mark, from which the rate bounced off on Tuesday.
In the meantime, on Wednesday, the pair passed the resistance of the 200-day simple moving average, which was located at the 105.40 level.
On Thursday, in addition to the mentioned weekly pivot point the rate was facing the resistance of the February high level of 106.25.
Daily chart
On Thursday, on the Swiss Foreign Exchange 72% of open position volume was in short positions.
On Wednesday, the sentiment was 67% short. On Tuesday, it was 61% short.
Trades have been gradually closing long positions and opening short positions. Namely, they take profits from the surge and open short positions in the expectations of a retracement back down.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 53% to buy.