On Monday, the USD/JPY was testing the resistance formed by the 55- and 100-hour moving averages.
If the given resistance holds, it is likely that some downside potential could prevail.
Economic CalendarThis week there is only one event that could affect the USD/JPY pair.
On Thursday, the US Durable Goods Orders data will be published at 12:30 GMT.
Read More: 14.10-18.10 Event Historical Reactions
USD/JPY short-term daily review
At the end of last week, the USD/JPY currency pair declined to the 108.30 level. During Monday morning, the pair was testing the resistance formed by the 55– and 100-hour SMAs at 108.60.If the given moving averages hold, it is likely that the exchange rate could go downwards in the nearest future. However, it is unlikely that the rate could drop lower than the 200-hour SMA, currently located at 108.33.
However, note that the currency pair could gain support from the Fibonacci 38.20% retracement at 108.44. In this case, the US Dollar could consolidate against the Japanese Yen in the short term.
Hourly Chart
On the daily candle chart, the low level of October 3 has provided with a reference point for drawing simple trend patterns. Dukascopy Analytics added an ascending channel pattern. This pattern could guide the rate higher until the end of the year.
Meanwhile, the rate surpassed the 38.20% Fibonacci retracement level at 108.43 and is testing the 200-day moving average.
Daily chart
Read More: Technical Analysis
Swiss traders remain long
Since Thursday, 52% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were almost neutral. Namely, in the 100-pip range 53% of pending orders were to sell and 47% were to buy.