The USD/JPY passed the supporting trend line of the channel up pattern, which guided the rate since August 15. However, the 100-hour simple moving average almost immediately provided the pair with additional support. Afterwards, the rate returned to trading in the borders of the channel.
Economic Calendar
On Wednesday, US Durable Goods Orders release at 12:30 GMT could cause an adjustment in the value of the US Dollar. All the pairs that involve the USD are bound to move.
On Thursday, the US Preliminary GDP could cause a notable reaction in the markets.
USD/JPY short-term review
On Monday morning, the USD/JPY currency exchange rate was testing the resistance of the 110.00 level.In the case that the rate manages to surge, it could reach for the resistance of the weekly R1 simple pivot point at 110.32
On the other hand, a decline would most likely find support in the 55 and 200-hour simple moving averages and the lower trend line of the channel up pattern in the 109.80/109.90 zone.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the currency exchange rate fails to break the resistance level near the upper line of a descending channel pattern near 110.50.In the case of the channel holding, the USD/JPY pair could continue to trend downward.
Daily chart
On Monday, traders on the Swiss Foreign Exchange were 67% short on USD/JPY.
On Friday, the sentiment was 65% bearish.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 64% to sell.