USD/JPY respects moving averages

Source: Dukascopy Bank SA
The USD/JPY currency pair has revealed that it is respecting the resistance of the 100-hour simple moving average and the support of the 50-hour SMA. On Monday morning, the pair traded near the 133.50 level.

Economic Calendar



On Wednesday, at 12:30 GMT the US Retail Sales and Core Retail Sales data is set to impact the rate through the value of the US Dollar.

Namely, a decreasing or flat retail sales change month on month is set to cause an adjustment of the USD to the downside. Meanwhile, a higher than expected reading could be the catalyst of a surge of the Dollar.

At 18:00 GMT on Wednesday, the US Federal Reserve Meeting Minutes are bound to be published. The details included in the document might be the reason for a USD move.

Hourly Chart
A move above the 100-hour simple moving average and the weekly simple pivot point at 133.57 could be stopped by the combination of the 200-hour SMA and the 134.00 mark. Higher above, note the previous support zone that surrounds the 134.50 level.

Meanwhile, a decline of the US Dollar against the Japanese Yen could find support in the 50-hour simple moving average and the 133.00 mark. Below 133.00, take into account the 132.50 level and the support of the zone around 132.00.

USD/JPY daily chart's review

On the daily candle chart, the pair has been trading between the support of the 100-day simple moving average with the 131.25/132.00 zone and the resistance of the 50-day simple moving average near the 135.00 mark.

Daily chart




Traders are short

On Monday, on the Swiss Foreign Exchange, traders were 70% short as that amount of open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to buy the USD against the JPY.

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