On Tuesday, the USD/JPY continued to fluctuate near the 109.50 level. However, the rate traded in a wide range and ignored the 55 and 100-hour simple moving averages. Namely, these indicators could not be used for guidance.
In the meantime, the 109.14 level provided the rate with support. Together with the 109.00 level the 109.14 mark make up a newly marked support zone.
Economic Calendar
On Tuesday, the US Consumer Price Index and Core Consumer Price Index could cause moves on all USD assets and pairs. The USD/JPY has moved from 4.8 to 27.1 pips on the release since November 2020.
On Thursday, the US Retail Sales and Core Retail Sales are also bound to influence the value of the US Dollar. The rate has moved from 9.3 to 16.7 pips on the release.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
If the rate continues to find support in the 109.00/109.14 zone, the rate would most likely eventually reach for and once again test the zone below the 110.00 mark and the 200-hour simple moving average.On the other hand, the passing of the support zone could result in a decline to the weekly S1 simple pivot point at 108.87.
Hourly Chart
On the daily candle chart, the rate is declining in the borders of a channel up pattern after bouncing off the resistance line of the pattern.
The rate should soon look for support in the lower trend line of the pattern.
Meanwhile, next notable resistance cluster on the daily candle chart is the zone that surrounds the 112.00 mark. The zone consists of the 2019 and 2020 high levels. Zoom out to see how the rate acted near this level during both of those years.
Daily chart
Since Friday, traders were 69% short on USD/JPY. On Tuesday, the sentiment was 68% short.
The Swiss Foreign Exchange open positions have been mostly short for more than a month. Traders were expecting a retracement down.
However, the rate should go back to approximately 108.00 for these traders to break even.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 77% to buy.