Yesterday, the USD/JPY currency pair reached the upper boundary of the short-term ascending channel.
From a theoretical point of view, it is likely that some downside potential could prevail, as the pair should reach the lower channel line.
Economic Calendar
This week, there is one notable time to watch the economic calendar. Today, a group of various US data sets will be published at 12:30 GMT.
Each one of these data sets on their own can cause a move of about ten pips. Combined, the move could total to up to 30 pips. br>
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair reached the upper boundary of the short-term ascending channel at 107.95. During Thursday morning, the pair declined to 107.70.
From a theoretical perspective, it is likely that some downside potential could prevail in the market, and the exchange rate could reach the lower channel line circa 107.50.
Meanwhile, note that the rate could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 107.60/107.69 range. If the given support holds, it is likely that the pair could consolidate.
On the daily candle chart, the exchange rate remains to be under pressure of the 55-day moving average and the monthly PP at 107.80.
Daily chart
From a theoretical perspective, it is likely that some downside potential could prevail in the market, and the exchange rate could reach the lower channel line circa 107.50.
Meanwhile, note that the rate could gain support from the 55-, 100– and 200-hour SMAs, as well the weekly and monthly PPs in the 107.60/107.69 range. If the given support holds, it is likely that the pair could consolidate.
Hourly Chart
On the daily candle chart, the exchange rate remains to be under pressure of the 55-day moving average and the monthly PP at 107.80.
Daily chart
Read More: Technical Analysis
Traders remain short
On Thursday, trader open position volume on the Swiss Foreign Exchange was 68% short.