The USD/JPY touched the 109.20 level during the night from Monday to Tuesday. Afterwards the rate retreated and began to trade sideways below the 109.00 mark.
In regards to the near term future, the rate was expected to get support from the 55-hour simple moving average. The SMA could push the rate higher.
At 13:30 GMT, the US Durable Goods Orders, Core Durable Goods Orders and Preliminary GDP are scheduled to be released.
In the meantime, the week's reaction tables have been published. Take a look at the 25.11-29.11 Event Historical Reactions publication.
Read More: 25.11-29.11 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair breached the medium-term descending channel north. During Tuesday morning, the rate tested the resistance level—the weekly R1 at 109.07.Given that the exchange rate is supported by the 55-, 100– and 200-hour SMAs, it is likely that some upside potential could prevail in the market. In this case the rate could reach the psychological level at 109.20.
However, if the given resistance holds, it is likely that the currency pair could trade sideways within the following trading session. Also, it is unlikely that the pair could drop lower than the weekly PP at 108.67.
Hourly Chart
On the daily candle chart, the pair has pierced the resistance of the 200-day simple moving average at 108.93. It signals that a surge is possible.
Daily chart
Read More: Technical Analysis
Traders remain short
On Tuesday, 62% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were to sell. In the 100-pip range 69% of pending orders were to sell and 31% were to buy.