USD/JPY declines below 109.60 - Market News and Research - Dukascopy Bank

Thu, 08 Apr 2021 11:24:18 GMT
Source: Dukascopy Bank SA
 

During early hours of Thursday's trading, the USD/JPY ended trading sideways between two zones.

The end of the consolidation was caused by the catching up of the 55-hour simple moving average from above. The SMA provided the rate with resistance, which was strong enough to push the rate through the support of the 109.60 level.

Economic Calendar



Notable events for this week are over. Expect the next week's event analysis to be published during the US trading hours of Thursday.

More detailed analysis for each Trading Ideas section pair is bound to be written in the daily publication on Friday.

USD/JPY short-term daily review

In the near term future, the rate was expected to reach and test the support zone of the 109.38/109.23 level.

If the mentioned support zone holds, the USD/JPY could trade sideways until the 55-hour SMA approaches the pair and provides additional resistance.

On the other hand, a passing of the support zone, the pair would look for support in the 109.00 level and afterwards the weekly S2 simple pivot point at 108.77.

Hourly Chart



On the daily candle chart, the rate is declining in the borders of a channel up pattern after bouncing off the resistance line of the pattern.

Meanwhile, next notable resistance cluster on the daily candle chart is the zone that surrounds the 112.00 mark. The zone consists of the 2019 and 2020 high levels. Zoom out to see how the rate acted near this level during both of those years.

Daily chart




Traders remain short

On Thursday, traders were 72% short on USD/JPY. On Wednesday, 74% of volume was short.

The Swiss Foreign Exchange open positions have been mostly short for more than a month. Traders were expecting a retracement down.

However, the rate should go back to approximately 108.00 for these traders to break even.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 70% to buy. The orders were 60% to sell on Wednesday.


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