On Wednesday, the USD/JPY suddenly dropped to the 200-hour simple moving average. The drop could be attributed to the events in Hong Kong.
Namely, Reuters reported that finance firms in Hong Kong urged their staff to remain at home. It might be possible that the firms, which stopped trading, moved their cash reserves into the JPY.
On Wednesday, at 13:30 GMT the US Consumer Price Index and Core Consumer Price Index are set to be published. The event has caused moves on the charts from 12.1 to 28.4 pips.
The US PPI and Core PPI data sets are scheduled to be released on Thursday at 13:30 GMT. This is a minor data release, but still worth taking into account due to the possibility of it creating a move above ten pips.
Since April 2019, the event has caused moves from 4.7 to 12.4 pips.
On Friday, the US Retail Sales data sets will be out at 13:30 GMT. The release has caused moves from 16.2 to 25.4 pips.
Meanwhile, the week's reaction tables have been published. Take a look at the 11.11-15.11 Event Historical Reactions publication.
Read More: 11.11-15.11 Event Historical Reactions
USD/JPY short-term daily review
On Wednesday, the USD/JPY dropped to the 200-hour SMA at 108.89.If this support level gets passed, the rate would have no technical support as low as 108.44. At that level the weekly S1 of the simple pivot points, a 38.20% Fibonacci retracement level.
On the other hand, the rate might trade sideways between the 200-hour SMA's support and the resistance of the 55 and 100-hour SMAs that are just above the 109.00 level.
Hourly Chart
On the daily candle chart, the rate pierced the support of the 200-day simple moving average, near which it has been trading for a week.
Meanwhile, the support of the large scale channel up pattern was located at 108.60 and could pause a decline.
Daily chart
Read More: Technical Analysis
Traders are short on USD/JPY
On Wednesday, 56% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were bullish. Namely, in the 100-pip range 56% of pending orders were to buy and 44% were to sell.
Previously, the orders were 54% to sell.