Shortly after Dukascopy Analytics published Wednesday's review, the USD/JPY managed to break the resistance of the 109.20 level. It resulted in a sharp surge that reached 109.60. The rate bounced off this level.
By the middle of Thursday's trading the rate had retreated, consolidated and resumed its surge. Namely, it was set to again test the 109.60.
Meanwhile, next week's scheduled event historical data tables have been published. Some major moves can be expected. Click on the link below to read the article.
Read More: 02.12-06.12 Event Historical Reactions
USD/JPY short-term daily review
During the second half of Thursday's trading, the rate was heading to the resistance of the 109.60 level. The level on its own has shown to provide technical resistance and it is being strengthened by a 50.00% Fibonacci retracement level.If the 109.60 fails to hold, the rate would next test a dominant patterns trend line above 109.65.
On the other hand, the rate might bounce off the 109.60 and look for support in the pivot point at 109.47 or the lower trend line of the junior channel pattern, which caused the surge on Wednesday.
Hourly Chart
On the daily candle chart, one can zoom out and better observe the already mentioned Fibonacci retracement levels. They have been actively impacting the USD/JPY rate throughout 2019.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Wednesday, 65% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions. By the middle of Thursday's trading, the sentiment was 68% short.
Meanwhile, trader set up pending orders were to sell. In the 100-pip range 83% of pending orders were to sell and 17% were to buy.
Previously, 75% of volume was short.