The USD/JPY currency exchange rate has been trading mostly ignoring and piercing technical levels. That is explained by the constant announcements being made about the US-China trade war.
Namely, the JPY is highly volatile due to it being the top safe haven currency, which is being bought during times of uncertainty.
The week's reaction tables have been published. Take a look at the 18.11-22.11 Event Historical Reactions publication.
Read More: 18.11-22.11 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair traded sideways around the 108.50 level. During Thursday morning, the pair maintained its consolidation.Note that the currency pair is pressured by the 55– and 100-hour moving averages, currently located circa 108.60. Thus, it is likely that some downside potential could prevail in the market. In this case the pair could gain support from the weekly S1 at 108.28.
If the given support holds, it is likely that the US Dollar could continue to trade sideways against the Japanese Yen within the following trading session. Also, it is unlikely that bulls could prevail, and the pair could exceed the weekly PP at 108.79.
Hourly Chart
On the daily candle chart, the pair is set to be supported by the 55-day simple moving average, which on Thursday was located at the 108.18 level.
In the meantime, the rate has close by the resistance of the 200-day simple moving average at 108.95.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Wednesday, 60% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were neutral. In the 100-pip range 51% of pending orders were to buy and 49% were to sell.
On Wednesday, 57% of orders were to sell.