Wednesday's decline of the USD/JPY currency exchange rate continued on into Thursday's early trading hours. By the middle of the day's European trading hours, the pair had reached below the 110.00 mark and the weekly simple pivot point at 109.92.
Economic Calendar
On Friday, the rate could move due to the publication of the US Producers Price Index at 12:30 GMT.
USD/JPY short-term review
A potential target for the decline is the 109.60 level, which provided the pair with support on September 3. However, the 109.70 level could also provide support, as it did on September 7.On the other hand, any kind of recovery of the USD/JPY would face the resistance of the weekly simple pivot point at 109.92, the 100 and 200-hour SMAs near 110.00 and the 55-hour SMA at 110.17.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has once again broken out of the squeeze between the 55 and 100-day simple moving averages. The rate had been trading between the two technical levels since August 19. However, there were two break outs form the range on August 24 and September 1.Daily chart
Since Friday, traders on the Swiss Foreign Exchange were 67% short on USD/JPY.
On Wednesday, the situation changed, as 64% of volume was in short positions. On Thursday, 66% of volume was short.
Meanwhile, traders have closed or triggered sell orders. Namely, on Thursday, trader set up pending orders in the 100-pip range around the rate were 52% to sell.
On Wednesday, 60% of orders in that range were to sell.