On the USD/JPY charts, the event resulted in a decline to the 157.30/157.40 range that has turned into support. Afterwards, an attempted recovery failed and confirmed the 159.30/159.45 zone as resistance.
Economic Calendar
On Tuesday, watch the publication of the US Retail Sales at 12:30 GMT. The markets could move due to an adjustment in the USD value.
USD/JPY hourly chart analysis
In the near term future, the pair could be pushed into the support range at 157.30/157.40 by the approaching 50-hour simple moving average. A move below the range is set to look for support in the 157.00 level.Meanwhile, a recovery of the pair has to pass the 50-hour SMA and the weekly simple pivot point at 158.95 together with the 159.00 level, before the rate tests the 159.30/159.45 range.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has found support in the prior high level range at 158.00 and the 50-day simple moving average.However, on Monday it appeared that the rate was moving below the range and the moving average. A potential broader decline could find support in the 156.00 level and the 100-day SMA.
Daily chart
Read More: Technical Analysis
Traders go long
On July 8, traders had closed their long positions and become bearish, as 66% of volume was short. Meanwhile, pending orders were 52% to sell.
By this week, traders had booked gains and were long, as 57% were in long positions and pending orders were 69% to buy.