The USD/JPY currency pair failed to break the resistance level at 110.20 on Thursday.
Economic Calendar
USD/JPY short-term review
Currently, the exchange rate is trading near a support level formed by the 100– hour simple moving average at 109.89.If the currency exchange rate breaks the support level, a decline towards the weekly pivot point at 109.71 could be expected within this session.
However, if the 100– hour SMA holds, the US Dollar could strengthen against the Japanese Yen during the following trading session.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the currency exchange rate is bouncing around between the support of the 100-day simple moving average at 109.70 and the 55-day simple moving average at 110.10.In the case of the channel holding, the USD/JPY pair could continue to trend downward.
Daily chart
Read More: Technical Analysis
Traders remain short
On Thursday, traders on the Swiss Foreign Exchange were 67% short on USD/JPY.
On Friday, the sentiment was 61% bearish.
Meanwhile, traders set up pending orders in the 100-pip range around the rate was 69% to buy.