The USD/JPY passed the support of the previous April low levels on Tuesday. Moreover, the currency exchange rate passed the support of the weekly S1 simple pivot point at 108.87.
The decline ended with the rate finding support in 108.80.
Economic Calendar
On Thursday, the US Retail Sales and Core Retail Sales are also bound to influence the value of the US Dollar. The rate has moved from 9.3 to 16.7 pips on the release.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
By the middle of Wednesday's trading, the rate had reached the resistance of the previous April low levels. If the resistance holds, the rate could resume its decline and eventually reach the 50.00% Fibonacci retracement level at 108.35.On the other hand, the 108.80 could continue to hold and force the rate either into sideways trading or a surge up to the 55 and 100-hour simple moving averages near 109.20.
Hourly Chart
On the daily candle chart, the rate has passed the lower trend line of the channel up pattern, which captures it 2021 surge. It signals that the almost four month surge of the rate is over.
Daily chart
On Wednesday, traders were 67% short on USD/JPY. On Tuesday, the sentiment was 68% short.
The Swiss Foreign Exchange open positions have been mostly short for more than a month. Traders were expecting a retracement down.
However, the rate should go back to approximately 108.00 for these traders to break even.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 79% to buy.