At mid-day on Tuesday, the USD/JPY currency exchange rate reached the support of the weekly S2 simple pivot point at 105.52. In addition, support was expected from the 105.50 round exchange rate level.
In the meantime, it was spotted that the pair's recovery attempt was stopped by the 105.80 level.
Economic Calendar
This week, on Wednesday, at 12:30 GMT the US Retail Sales and Core Retail Sales data sets are set to be published. Since April, the USD/JPY has moved from 6.1 to 13.6 pips on the announcement.
Wednesday's events are set to end with the most notable event of them all - the Federal Open Markets Committee announcements and the US Federal Reserve Rate Announcement. The USD/JPY moved from 17.6 to 44.6 pips on the announcements that occurred since March.
Afterwards, at 12:30 GMT, the US weekly Unemployment Claims could cause a move. However, despite all pairs moving during the publication, the USD/JPY has remained almost flat.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
On Tuesday, the rate was testing the support of the weekly S2 simple pivot point at 105.52.If the given support level holds, the rate could retrace back up to the technical resistance levels near the 105.80 level.
On the other hand, in the case of the weekly S2 failing to hold, the rate would drop down to the weekly S3 pivot point at 105.25.
Hourly Chart
On the daily candle chart, the pair has bounced off the resistance of the 55-day simple moving averages, which on Tuesday was located at the 106.40 level.
Daily chart
Since Friday, traders of the Swiss Foreign Exchange were bearish, as 61% of all open position volume was in short positions.
On Tuesday, the sentiment slightly changed, as 62% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range were 65% to buy.