Despite passing the resistance of the 110.00 level, the USD/JPY currency exchange rate did not surge to the weekly R1 at 110.32. Instead, the pair bounced off the 110.15 level and declined, ignoring all technical support levels. Namely, the 55, 100 and 200-hour SMAs, the weekly simple pivot point and the lower trend line of a channel up pattern were passed by the rate.
On Tuesday morning, the currency exchange rate was fluctuating between the 109.65 and 109.90 levels.
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
If the USD/JPY currency exchange rate starts a surge, it would immediately face the resistance of the 110.00 level. Above the 110.00 mark, the 110.15 and 110.20 could once again provide resistance.In the case of a decline, the rate could find support in the 109.60 and 109.50 level, which provided the rate with support throughout the prior week.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the currency exchange rate is bouncing around between the support of the 100-day simple moving average at 109.69 and the 55-day simple moving average at 110.13.In the case of the channel holding, the USD/JPY pair could continue to trend downward.
Daily chart
Since 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 54% to sell.