As expected, the USD/JPY made a sharp move. Namely, the rate started the week's trading with a surge up to the 107.75 level.
However, the 107.75 mark provided resistance and caused a decline. By the middle of the day's GMT trading hours, the pair had reached the 107.50 level.
Economic Calendar
During the week, notable macroeconomic data releases are set to start on Monday at 14:00 GMT. The US ISM Non-Manufacturing PMI is scheduled to be released.
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
By the middle of the day, the rate had passed the support of the 55 and 100-hour simple moving averages respectively at 107.54 and 107.60 and the simple weekly pivot point at 107.58.It is likely that some downside potential could prevail in the market. In this case the pair could gain support from the 200-hour SMA near 107.38.
On the other hand, last week, the rate was supported by 107.45. Namely, the pair found support in this level three times and continued to trade sideways.
Hourly Chart
On the daily candle chart, the rate trades between the resistance of the 100-day simple moving average at 107.82 and the support of the 55-day SMA at 107.40 level. It appears that the 100-day SMA stopped the surge that was attempted during the morning hours.
Daily chart
Read More: Technical Analysis
Short sentiment increases
Since Thursday, on the Swiss Foreign Exchange 56% of open position volume was in short positions
The sentiment grew on Monday, as 59% of open position volume was short.
Meanwhile, 52% of set up pending trade orders in a 100-pip range around the exchange rate were to sell.
The orders were 51% to buy on Friday. Namely, pending orders are neutral.