On Thursday morning, the USD/JPY rate was approached by the 55-hour SMA, which caused a drop of the rate. Moreover, the drop passed the support of the pivot points at the 104.13 level.
In general, the rate had no technical support as low as the weekly S2 simple pivot point at 103.54. However, the round exchange rate level of 104.00 could pause the pair's decline.
Economic Calendar
On Thursday, at 12:30 GMT two events will be released that the financial media will talk about. However, recently both of them have not caused notable moves.
The GDP has moved the USD/JPY from 9.2 to 21.1 pips since July 2019. Meanwhile, the Unemployment Claims since September 24 have caused 2.9 to 9.2 pip moves
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
The pair is expected to test the psychological support of the 104.00 mark. If this level fails to cause a retracement back up, the USD/JPY should reach for the weekly S2 simple pivot point at 103.54.On the other hand, if the 104.00 level holds, the pair would test the resistance of the pivot points at 104.13 and afterwards the 55-hour simple moving average.
Hourly Chart
On the daily candle chart, the rate is testing the support zone of the large scale descending triangle pattern. If the support fails, in theory a sharp breakout downwards should occur.
On the other hand, the support holding, could result in the pair retracing back up to the resistance levels near the 105.00 mark.
Daily chart
On Thursday, traders of the Swiss Foreign Exchange were neutral, as 52% of all open position volume was in long positions.
On Wednesday, the sentiment became neutral, as 52% of volume was short.
In the meantime, trader set up pending orders in the 100-pip range around the rate were 77% to buy the pair.
On Wednesday, traders set up buy orders, as 71% of orders were to buy the pair.