USD/JPY has broken out of the squeeze between the 55 and 100-hour simple moving averages. However, the break out did not result in a sharp move, as the pair immediately was stopped by the resistance of the 109.00 level.
In regards to the near term future, it was most likely expected that the rate could be pushed up by the combination of the two mentioned simple moving averages.
Economic Calendar
Next week, data is bound to reveal, how the coronavirus has continued to impact the US economy.
On Wednesday, the US Retail Sales data sets are bound to be published at 12:30 GMT. Most likely they will surprise the markets with the reveal of a drop in US consumption.
On Thursday, all attention is expected to be set on the weekly US Unemployment Claims. During the last weeks this previously ignored announcement has been revealing shocking data, as during the two week period almost ten million US workers claimed unemployment benefits. The unemployment claims were previously ignored as they had stopped causing market reactions.
USD/JPY short-term daily review
The rate is expected to get pushed up by the 55 and 100-hour SMAs into the resistance of the weekly simple R1 pivot point at 109.24. If this level also gets broken, the pair would aim at the 61.80% Fibo and a R2 pivot point near 109.85.Hourly Chart
On Thursday, 61% of trader open position volume was bearish.
Previously, on Wednesday, 64% of trader open position volume on the Swiss Foreign Exchange was in short positions. Before that, the sentiment had declined to 61% short on Tuesday.
During the week before April 5, traders were also short with more than 60% of open position volume being bearish.