The approaching of the resistance of the 50-hour simple moving average from above caused a decline of the rate, which eventually passed the support of the 113.00 mark.
At the start of the day's US trading hours, the rate was heading to the support of the weekly S1 simple pivot point at 112.50. Note that the 112.50 mark could act as support on its own, without the pivot point.
Economic Calendar
USD/JPY short-term review
If the rate passes below the 112.50 mark, it would have no technical support as low as the weekly S2 simple pivot point at 111.54. However, it is highly likely that the 112.00 level might provide support to the USD/JPY.Meanwhile, a recovery from 112.50 could face the resistance of the previously passed 113.00/113.07 zone. In addition, take into account that the 50-hour simple moving average is sharply descending and could one again act as resistance.
Hourly Chart
USD/JPY daily chart's review
The USD/JPY has passed the support of the 50-day simple moving average. Further support could be provided by the 2019 and 2020 high level zone, which was broken in October.Daily chart
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Short sentiment is intact
Since Monday, on the Swiss Foreign Exchange, traders were short, as 74% of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 55% to buy.