On Tuesday morning, the USD/JPY currency exchange rate declined below the 200-hour simple moving average and below the 110.50 level.
However, it did not indicate that the pair would continue to decline, as the same type of piercing of these levels also occurred on Monday. It was not followed by a further drop of the pair.
Economic CalendarDuring the 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.
Read More: 24.02-28.02 Event Historical Reactions
USD/JPY short-term daily review
On Monday, the USD/JPY currency pair tumbled to the support provided by the 200-hour SMA near 110.50. During today's morning, the pair was testing the given support.If the given moving average does not hold, it is likely that some downside potential could prevail in the market. Note that the exchange rate would have to surpass the weekly S1 at 110.07.
On the other hand, the US Dollar could trade sideways against the Japanese Yen between the given SMA and the weekly PP at 111.15. Also, it is unlikely that bulls could prevail due to the resistance formed by the 55– and 100-hour SMAs near 111.30.
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
Read More: Technical Analysis
Traders short USD/JPY
Since last Tuesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
This Tuesday, the sentiment had changed, as 73% of open position volume was in shorts.
Meanwhile, in the 100-pip range 55% of pending orders were to buy and 45% were to sell.
Previously, the orders were 53% to sell on Monday.