On Tuesday, the rate continued to trade near the trading levels of the past few trading sessions.
Moreover, it was expected that the pair could test the resistance of the 111.50 level for a third time. In the case of this level failing, the rate could test the 112.00 level, which caused the February drop.
Economic CalendarThis week is expected to be relatively calm for the USD/JPY pair.
On Wednesday, the US Durable Goods Orders data will be released at 12:30 GMT. The USD/JPY has moved only from 3.9 to 10.4 pips due to the announcement.
The week will end with the US Final GDP data release on Thursday at 12:30 GMT. This event also us unlikely to impact the USD/JPY, as since December 2018 it had moved the rate from 5.5 to 8.9 pips.
Meanwhile, next week's data is available. Click on the link below to see the historical data tables with the reactions to various events.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tried to surpass the 111.50 level. During Tuesday morning, the pair was testing the support provided by the 55-hour SMA near 110.50.If the given support holds, it is likely that some upside potential could prevail in the market, and the exchange rate could exceed the 111.50 level.
However, note that the currency pair has to surpass the monthly R1 at 111.04. If the given resistance holds, it is likely that some downside potential could prevail in the market. In this case the pair could gain support from the weekly and monthly PPs at 109.20.
Hourly Chart
On the daily candle chart, the rate continues to recover, as it approaches the resistance of the 112.00 level.
Daily chart
Read More: Technical Analysis
Bearish sentiment increases
On Monday, 56% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Tuesday's GMT trading hours, the sentiment was 59% short.