Despite having no resistance, the USD/JPY currency pair failed to exceed 107.90.
On Tuesday morning, the pair was testing the support formed by the 55- and 100-hour SMAs, as well the weekly and monthly PPs.
Economic Calendar
This week, there is one notable time to watch the economic calendar. At 12:30 on Thursday, a group of various US data sets will be published.
Each one of these data sets on their own can cause a move of about ten pips. Combined, the move could total to up to 30 pips. br>
USD/JPY short-term daily review
On Monday, the USD/JPY currency pair traded sideways near 107.70. During today's morning, the pair touched the 107.90 level.
It is likely that the exchange rate could gain support from the 55– and 100-hour SMAs, as well the weekly and monthly PPs in the 107.60 area. Thus, some upside potential could prevail in the market.
However, if the rate fails to surpass the 107.00 mark, it is likely that the US Dollar could consolidate against the Japanese Yen in the short.
Also, it is unlikely that bears could prevail in the market, and the pair could decline below the 200-hour SMA near 107.50.
On the daily candle chart, the exchange rate has gained support from the 55-day moving average near 107.70.
Daily chart
It is likely that the exchange rate could gain support from the 55– and 100-hour SMAs, as well the weekly and monthly PPs in the 107.60 area. Thus, some upside potential could prevail in the market.
However, if the rate fails to surpass the 107.00 mark, it is likely that the US Dollar could consolidate against the Japanese Yen in the short.
Also, it is unlikely that bears could prevail in the market, and the pair could decline below the 200-hour SMA near 107.50.
Hourly Chart
On the daily candle chart, the exchange rate has gained support from the 55-day moving average near 107.70.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Tuesday, trader open position volume on the Swiss Foreign Exchange was 64% short. On Monday, the sentiment was 58% short.