On Tuesday, the USD/JPY rate dropped to the 106.50 level. By doing this it passed the support of the 107.00 mark and a cluster of technical support levels at 106.85.
In regards to the near term future, the rate was expected to reach the weekly S3 simple pivot point at 106.44.
Economic Calendar The week starts with the US Advance GDP release on Wednesday at 12:30 GMT. This is the first of three types of US quarterly GDPs. The Advance release reveals the first Gross Domestic Product numbers of a quarter. The following Preliminary and Final GDPs usually reveal slight adjustments. In general, the data will reveal the first impact of the coronavirus on the US economy.USD/JPY short-term daily review
It is likely that the exchange rate could be pressured by the Fibo 38.20%, the weekly S2 and the monthly PP near 106.85. Thus, some downside potential could prevail in the market.Hourly Chart
On Tuesday, 58% of trader open position volume on the Swiss Foreign Exchange was in short positions.
The sentiment had been mostly short for a week. It can be concluded that traders had gained profits during the decline.