Since the middle of Friday's trading hours, the USD/JPY has traded between the support of the 113.74/113.81 zone and the resistance of the 50-hour simple moving average at 114.00.
On Friday morning, the zone provided enough resistance for a decline to begin. By the middle of the day, the decline had pierced the 114.00 mark and the 50-hour simple moving average.
Economic Calendar
Next week, on Tuesday, at 13:30 GMT, the US Retail Sales and US Core Retail Sales are bound to impact the value of the US Dollar. USD/JPY has moved from 12.2 to 25.5 pips on the release.
On Thursday, note that a minor USD move could be caused by the weekly US Unemployment Claims. The pair has moved from 9.0 to 28.5 pips at the time of the claims.
However, on November 10, the move of 28.5 pips was caused actually by the US CPI. Without the November 10 release, the movement range is 9.0 to 12.2 pips.
Click on the link below to find out more about data releases of this and other currency exchange rates.
USD/JPY short-term review
If the USD/JPY declines below the support zone, it would immediately encounter a strong support zone. Namely, at 113.65 the 100 and 200-hour simple moving averages were strengthening the weekly simple pivot point. Below these technical levels, there is no support as low as 113.00, where the weekly S1 simple pivot point was located at.Meanwhile, a surge above the 114.00 mark and the 50-hour SMA would most likely result in a test of the resistance zone at 114.22/114.32.
Hourly Chart
USD/JPY daily chart's review
The 114.40/114.75 zone is the resistance zone of the late 2017 and 2018 high levels.Meanwhile, note the support zone below the 112.50 level. The zone consists of the 2019 and 2020 high levels.
Daily chart
On Monday, on the Swiss Foreign Exchange, traders were short, as 74% of open position volume was in short positions.
On Friday, sentiment was 72% short.
Meanwhile, on Friday, trader set up pending orders in the 100-pip range around the rate were 53% to sell.
On Monday, the orders were 52% to sell.