On Friday, the USD/JPY retraced down to the 111.50 level, where it was about to meet with the support of the 55-hour simple moving average.
The 55-hour simple moving average could provide the pair with the needed support to push through the resistance of the 112.20 level.
USD/JPY 2.34% surge
Since Wednesday, February 19, the Japanese Yen depreciated 2.34% or 257 pips against the US Dollar. Note that the Yen depreciated against other major currencies as well.
Analysts suggest that the Japanese Yen tumbled as the demand for it as for the safe-haven currency also decreased.
The Japanese economic growth is pressured by the decline of foreign visitors to the country due to the South Korean boycott and the coronavirus outbreak. Moreover, the Japanese financial organizations were forced to shut business operations in China due to the epidemics.
Economic CalendarNext week there are no notable events that might impact the currency exchange rate. However, some economic calendars have US events listed as high impact.
On Thursday, at 15:30 GMT the US Durable Goods Orders are set to be published. This event has caused moves from 3.9 to 9.4 pips since August.
Moreover, the 9.4 pip move was an anomaly caused by the simultaneous release of other data together with the Durable Goods orders. Without it, the range is from 3.9 to 7.3 pips.
At the same time, the US Preliminary GDP is scheduled to be published. This is the other data set that together with the Durable Goods orders caused a 9.4 pip move. Without the other data, the GDP has caused moves from 2.8 to 9.6 pips.
The week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
USD/JPY short-term daily review
By the middle of Friday's London trading hours, the USD/JPY had found support in the 111.50 level. In the meantime, the 55-hour SMA had reached the 111.43 level.In the near term future, it was expected that the simple moving average would provide the rate with technical support. The support could push the rate through the resistance of the 112.20 level, which kept the pair down on Thursday.
On the other hand, if the SMA fails to push the pair higher, the rate could decline to the technical support levels that surround the 110.70 level.
Hourly Chart
On the daily candle chart, the rate has confirmed the 112.20 level, as a resistance level. By zooming out, one can observe that the pair bounced off this level two times in 2019.
Daily chart
Since Tuesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 70% of pending orders were to sell and 30% were to buy.
Previously, the orders were 81% to sell on Thursday.