On Wednesday, the retreat of the USD/JPY found support in the 104.40 level. Afterwards, the rate surged and approached the hourly simple moving averages.
If the SMAs provide resistance, the pair could resume its decline and reach for the 104.00 mark.
Economic Calendar
On Thursday, at 13:30 GMT the US weekly Unemployment Claims will be published. The USD/JPY has recently moved from 3.3 to 10.4 pips on the publications.
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
It is unlikely that some upside potential could prevail in the market due to the resistance area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP and the Fibo 23.60% in the 104.95/105.26 range.It is likely that the exchange rate could continue to trade downwards within the following trading session. In this case the rate could decline to the support level formed by the weekly S2 at 104.10.
Hourly Chart
On the daily candle chart, it is clear why the 104.40 mark provided support. Namely, it was the 100-day simple moving average, which caused the pause of the rate's decline.
Daily chart
On Wednesday, on the Swiss Foreign Exchange 61% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 57% to buy.