Yesterday, the USD/JPY currency pair managed to exceed the Fibo 23.60% at 107.02.
During Wednesday morning, the pair was trading in the 107.50 area.
Economic CalendarThis week, there are no events left that could impact the USD/JPY currency pair.
Meanwhile, Dukascopy Analytics are not publishing the historical reactions this week, as the market environment has changed to such a degree that the historical data is unlikely to be relevant.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair raised to the 107.50 level. During Wednesday morning, the pair was trading near the given level.Note that the exchange rate is supported by the 55-hour SMA near 106.70. Thus, some downside potential could prevail in the market. In this case the rate could face the resistance level—the Fibo 38.20% at 108.44.
If the given resistance does not hold, the currency pair could target the Fibo 50.00% at 109.58. Otherwise, the pair could re-test the lower boundary of the short-term descending channel in the 107.50 area.
Hourly Chart
On the daily candle chart, the currency exchange rate was recovering, as it retraced back up to the daily simple moving averages. The SMAs provided technical resistance.
Daily chart
Read More: Technical Analysis
Long sentiment decreases
On Wednesday, 57% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.