On Tuesday, the USD/JPY was testing the support formed by the 55-hour moving average.
If the given moving average holds, it is likely that the US Dollar could appreciate against the Japanese Yen in the short term.
Economic CalendarThis week there is only one event that could affect the USD/JPY pair.
On Thursday, the US Durable Goods Orders data will be published at 12:30 GMT.
Read More: 14.10-18.10 Event Historical Reactions
USD/JPY short-term daily review
On Monday, the USD/JPY currency pair breached the short-term descending channel north. During today's morning, the pair was testing the support formed by the 55-hour SMA at 108.55.If the given support level holds, it is likely that the currency pair could try to exceed the psychological level at 108.70. On the other hand, the US Dollar could consolidate against the Japanese Yen in the nearest future.
However, note that the exchange rate is pressured by the 100-hour SMA. Therefore, if the given support level does not hold, some downside potential could prevail. In this case, the rate could face support of the Fibo 38.20% and the 200-hour SMA at 108.44.
Hourly Chart
On the daily candle chart, the low level of October 3 has provided with a reference point for drawing simple trend patterns. Dukascopy Analytics added an ascending channel pattern. This pattern could guide the rate higher until the end of the year.
Meanwhile, the rate surpassed the 38.20% Fibonacci retracement level at 108.43 and is testing the 200-day moving average.
Daily chart
Read More: Technical Analysis
Swiss traders are neutral
On Tuesday, 52% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up orders were almost neutral. Namely, in the 100-pip range 60% of pending orders were to sell and 40% were to buy.