The USD/JPY has continued to recover, as the rate reached the 103.80 mark on Monday morning. However, the touching of a new high level was followed by a decline back to the support levels near 103.40.
In the meantime, a channel up pattern was added to the currency exchange rate, which represents the rate's recovery from the 103.00 mark.
Economic Calendar
The week of Christmas is set to have an early market closing on Thursday in many countries and reduced liquidity due to people being on holidays.
Namely, on Tuesday, the US Final GDP could cause volatility. The USD/JPY has moved 5.5 to 38.9 pips on the announcement since September 2019. However, the 38.9 move was an anomaly caused by the coronavirus in March. The usual range for the pair is 5.5 to 8.9 pips.
Last but not least, on Thursday, the US Durable Goods Orders and Core Durable Goods Orders data will be released. Minor moves of 3.3 to 11.6 pips have occurred on the announcements.
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
During Monday morning hours, the USD/JPY currency pair pierced the resistance provided by the 200-hour SMA near 103.80. However, it immediately bounced off the resistance of a channel up pattern.It is likely that, during the last three trading days before Christmas, the exchange rate could face the resistance level formed by the weekly R1 at 104.05 and bounce off in the short term. Note that the rate could gain support from the 55– and 100-hour SMAs, as well the weekly PP in the 103.30/103.46 range.
Hourly Chart
On the daily candle chart, the rate has passed the November low level of 103.20. Next target for the rate on the daily candle chart could be the 2020 low level of 102.00.
Daily chart
On Friday, on the Swiss Foreign Exchange 65% of volume was in long positions.
On Monday, the sentiment was 71% long. It could have occurred due to both long positions being opened and short traders taking profits.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 63% to sell the pair.