On Wednesday, the USD/JPY currency exchange rate traded above the 103.50 level. In the meantime, the pair was testing the resistance of the 104.00 level.
The rate was expected to eventually decline, as it faced a cluster of resistance formed by various technical levels.
Economic CalendarThe week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
Read More: 09.03-13.03 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair declined to the 103.50 level. During Thursday morning, the pair was trading near the given level.Note that the exchange rate faced the resistance formed by the weekly S1, the monthly S2, as well the 55– and 100-hour SMAs in the 104.05/104.50 area. Thus, a reversal south could occur.
However, the currency pair could gain support from the weekly S1 at 102.74. If the given support holds, it is likely that the pair could consolidate. Otherwise, the rate could target the monthly S3 at 101.61.
Hourly Chart
On the daily candle chart, Dukascopy Analytics have marked the 100.00 level. This is the low level of 2016. Since 2016 this level has not been approached by the USD/JPY.
Meanwhile, take into account that the 2017 and 2019 low level of 104.60 was passed on Monday.
Daily chart
Read More: Technical Analysis
Long sentiment decreases
On Wednesday, 61% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Thursday's GMT trading hours, the sentiment was 58% long.