On Tuesday, the USD/JPY traded flat near the 109.60 level. Although, at the start of the US trading session, the rate declined down to the support of the 55-hour SMA at the 109.50 level.
If the SMA, fails to keep the rate up, the pair could decline down to the 100-hour SMA near 109.25.
This week, the pair could be impacted only by one data release. On Friday, the US Final GDP is set to be published at 13:30 GMT. However, since September 2018, the USD/JPY has moved only from 6.3 to 8.9 pips on the announcements.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 16.12-20.12 Event Historical Reactions
USD/JPY short-term daily review
During Tuesday's trading the rate declined to the support of the 109.50 level, which was providing psychological support. Moreover, it was strengthened by the technical support of the 55-hour simple moving average.If the support levels manage to hold, the rate should make another attempt to pass the 109.60 level. If that level is clearly broken, the rate would aim to reach the weekly R1 simple pivot point at 109.91.
On the other hand, if the support levels fail, the pair should decline to the 100-hour SMA, which on Tuesday was located near 109.25.
Hourly Chart
On the daily candle chart, the rate is testing the resistance of a 50.00% Fibonacci retracement level at 109.60. The same retracement level stopped a surge in late November.
Daily chart
Read More: Technical Analysis
Traders remain short
On Tuesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were slightly bearish. In the 100-pip range 53% of pending orders were to sell and 47% were to buy.