The decline of the USD/JPY extended itself below the support levels near 110.40.
By the middle of Thursday's trading session the rate had reached the 110.00 level. The decline was expected to continue down to the 109.90 level, where the 200-hour simple moving average was located at.
During previous Monday's trading session, the Japanese Yen appreciated 54 pips or 0.50% against the US Dollar. Note, that the US Dollar also depreciated significantly against gold.
The reason for the advance was the announcement from the Chinese government that it would impose tariffs on $60B of the US goods from June 1.
Most likely, the demand for the Japanese Yen and for gold has increased as for the safe-haven assets.
One last data set
USD/JPY short-term daily review
By the middle of Thursday's trading session the pair had reached the 110.00 level. Moreover, the decline was expected to continue.The rate was expected to reach down tot eh 200-hour SMA, which was located near the 109.90 level by the middle of London's trading session.
If the rate passes the 200-hour SMA, it will aim at the weekly PP, which was located at 109.77.
On the other hand, the 110.00 has in the past worked as a psychological support level. It could stop the decline and force the rate into a reversal of its direction.
Hourly Chart
Previously it was constantly repeated that the rate is oversold, as the daily candle chart's simple moving averages were located far above the currency exchange rate.On Tuesday, the rate had reached and pierced one of the daily simple moving averages. Namely, the 100-day SMA was passed at the 110.47 level.
The rate no longer can be considered oversold on the daily chart.
Daily chart
On Wednesday, 57% of open position volume on the Swiss Foreign Exchange was in long positions.
Some traders had taken profit during the retracement back down.
On Thursday, they reopened their positions or short sellers had taken profits, as the sentiment was 60% long.
Meanwhile, trader set up pending orders were mostly bullish, as 57% of pending commands in the 100-pip range were set to buy.