On Tuesday, the USD/JPY started trading with the passing of the resistance of a simple moving average, which afterwards started to support the currency exchange rate.
By the middle of the day's GMT trading hours, the rate was expected to head for a strong cluster of technical resistance levels that was spread from 109.10 to 109.34.
Economic CalendarDuring the week, historical data can be ignored, as the fundamental background has changed in a way that the data cannot help in making forecasts.
However, take a look at the list of previously notable events, as the markets will be looking at them to understand the impact of the coronavirus.
USD/JPY short-term daily review
Given that the exchange rate is supported by the 55-hour SMA near 108.10, it is likely that bulls could prevail in the market. Note that the rate would have to surpass the resistance cluster formed by the 100– and 200-hour SMAs, the Fibo 23.60%, as well the weekly and monthly PPs in the 109.16/109.85 area.If the given resistance cluster holds, it is likely that the US Dollar could consolidate against the Japanese Yen in the nearest future. Also, it is unlikely that bears could prevail, and the rate could decline below the support formed by the Fibo 50.00% and the weekly S1 at 106.68.
Hourly Chart
On the daily candle chart, the rate is trading near the daily simple moving averages. Meanwhile, on Tuesday the 55 and 100-day SMAs were providing resistance at the 109.00 mark.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
Since Monday, 62% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Previously, on Friday, the sentiment was 68% short. Some traders had taken profits on Monday.