On Wednesday morning, the USD/JPY found support in the 100-hour simple moving average at 109.40. This event resulted in a surge, which by the middle of the day had reached the 109.60 level.
In general, the rate was expected to test the resistance zone from 109.60 to 109.70, which stopped the rate's December surge.
This week, the pair could be impacted only by one data release. On Friday, the US Final GDP is set to be published at 13:30 GMT. However, since September 2018, the USD/JPY has moved only from 6.3 to 8.9 pips on the announcements.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 16.12-20.12 Event Historical Reactions
USD/JPY short-term daily review
The bounce off from the 100-hour SMA resulted in a surge, which was testing the resistance zone from 109.60 to 109.70.If the rate manages to pass this resistance zone, it should test the weekly R1 simple pivot point at 109.91. On the other hand, the rate might continue sideways between the hourly simple moving averages near 109.50 and the 109.60/109.70 zone.
Hourly Chart
On the daily candle chart, the rate is testing the resistance of a 50.00% Fibonacci retracement level at 109.60. The same retracement level stopped a surge in late November.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Tuesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were slightly bearish. In the 100-pip range 57% of pending orders were to sell and 43% were to buy.