The decline of the USD/JPY almost reached the 106.60 level, before recovering. During the early hours of Friday's trading, the pair was aiming at the resistance of the 109.00 level.
Economic Calendar
There are no notable events scheduled for the week that could notably impact the USD/JPY currency exchange rate.
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
At the 109.00 level, a resistance zone starts. The zone previously provided support at the start of April and afterwards provided resistance during this week. In addition, note that the 100-hour SMA strengthens the zone. Moreover, the upper trend line of a channel down pattern could provide additional resistance.If the pair passes the mentioned resistance levels, the USD/JPY could reach for the 109.40 level and the 200-hour simple moving average. On the other hand, a failure to surge could result in the continuation of the previous decline and new low levels.
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.
Next support on the chart was the 50.00% Fibonacci retracement level at 108.35. The retracements are measured by connecting the 2018 high and 2020 low level.
Daily chart
On Friday, traders on the Swiss Foreign Exchange were 62% short on USD/JPY. On Thursday, the sentiment was 66% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 91% to buy.
The orders were most likely take profits of the short positions and buy to open long position orders.