As expected, the 109.00 level managed to hold and the USD/JPY currency exchange rate has retreated. By the middle of Friday's trading the pair had reached the 108.60 level and had no support as low as 108.40.
In general, the rate was expected to reach the support levels at 108.40 and future forecast scenarios were based upon what would happen at that level.
Economic Calendar
Meanwhile, next week's scheduled event historical data tables have been published. Click on the link below to read the article.
USD/JPY short-term daily review
Note that the exchange rate is pushed down by the 55– and 100-hour moving averages, currently located circa 108.80. Thus, it is likely that some downside potential could prevail in the market. In this case the rate could gain support of the monthly S1 and the Fibo 38.20% at 108.44.If the given support level holds, it is likely that the currency pair could trade sideways in the short term.
Hourly Chart
On the daily candle chart, the 38.20% Fibonacci retracement at the 108.43 level was strengthened by the 55-day simple moving average.
In the meantime, the 200-day SMA was pierced by the rate at the 108.90 level.
These factors indicate that the 55-day SMA could push the rate through the resistance of the 200-day SMA.
Daily chart
On Friday, 67% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were to buy. In the 100-pip range 57% of pending orders were to buy and 43% were to sell.
Previously, 62% of orders were to sell. The orders have been shifting from buy and sell dominance since Wednesday.