On Tuesday, the USD/JPY started trading with the passing of the resistance of a simple moving average, which afterwards started to support the currency exchange rate.
By the middle of the day's GMT trading hours, the rate was expected to head for a strong cluster of technical resistance levels that was spread from 109.10 to 109.34.
Economic CalendarUSD/JPY short-term daily review
Given that the exchange rate is supported by the 55-hour SMA near 108.10, it is likely that bulls could prevail in the market. Note that the rate would have to surpass the resistance cluster formed by the 100– and 200-hour SMAs, the Fibo 23.60%, as well the weekly and monthly PPs in the 109.16/109.85 area.Hourly Chart
Since Monday, 62% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Previously, on Friday, the sentiment was 68% short. Some traders had taken profits on Monday.