After making two attempts to pass the resistance of the 106.20 level, the USD/JPY currency exchange rate declined.
At mid-day on Thursday, the pair passed below the support of the 55-hour simple moving average. Previously, on Tuesday, the SMA caused the rate's surge from the 105.20 to the 105.20 level.
Economic Calendar
On Thursday, market participants are set to watch the weekly US Unemployment Claims at 13:30 GMT. However, this event has not caused any volatility since January 21, when a 10.4 pip move occurred.
The week will end for the USD/JPY with the US PMIs at 14:45 GMT. The release could cause a move from 3.0 to 28.6 pips. However, the November 28.6 pip move appears to be an anomaly, as without it the range would be 3.0 to 7.6 pips.
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
It is likely that the exchange rate could gain support from the 100-hour SMA and the weekly R1 in the 105.60 area. Thus, the rate could try to exceed the resistance level—the weekly R2 at 106.28 in the short term.In the meantime, note that the currency pair is pressured by the 55-hour SMA near 105.80. Thus, some downside potential could prevail in the market, and the pair could decline to the support provided by the 200-hour SMA, the Fibo 23.60% and the weekly PP in the 105.02/105.20 range.
Hourly Chart
On the daily candle chart, note that the 200-day simple moving average could provide support to the rate at the 105.50 level.
Meanwhile, on Tuesday it was spotted that the currency exchange rate has been surging in a channel up pattern since the start of 2021.
Daily chart
On Tuesday, on the Swiss Foreign Exchange 65% of open position volume was in short positions.
On Wednesday, the sentiment was 67% short. By the middle of Thursday's trading, the sentiment was 70% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 75% to buy.
The orders were previously 62% to sell.