The USD/JPY has dropped down below the 107.80 level. The rate passed all of the hourly simple moving averages during the move.
In general, the rate is expected to continue to decline. Moreover, a new descending channel pattern has been added to the hourly candle chart.
No more data this week
The USD/JPY this week was affected only by one macroeconomic data release.
Namely, the US Retail Sales and Core Retail Sales that were published on Tuesday at 12:30 GMT
Meanwhile, note that the next week will be reviewed on Friday at 12:00 GMT in an Economic Calendar Overview.
Click Here: Economic Calendar Overview 19/07
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tumbled to the 107.70 level. During Thursday's morning, the pair was trading at the given level.On the one hand, the exchange rate could continue to go downwards, as it could target the lower boundary of the short-term descending channel located circa the 107.50 mark.
On the other hand, the pair could reverse north within the following trading hours. Note, that the rate has to surpass the monthly PP at 107.84. Also, it is unlikely, that the pair could jump higher than 108.10 due to the resistance of the 55– and 100-hour SMAs.
Hourly Chart
The daily chart was updated at mid-day on Thursday. In general, the rate is in a large scale descending channel that has guided the pair since late February.
Meanwhile the rate is surging in a smaller scale ascending channel pattern.
Note that in accordance with these patterns the rate is expected to decline down to a support cluster at 107.00. At that level various pivot points, a 23.60% Fibonacci retracement level and the lower trend line of the smaller pattern are located at.
Daily chart
Read More: Technical Analysis
Traders are long on USD/JPY
On Wednesday, 74% of open USD/JPY position volume on the Swiss Foreign Exchange was located in long positions.
The sentiment decreased on Thursday, as 72% of volume was bullish.
Meanwhile, trader set up pending orders were neutral as in the 100-pip range 51% of pending orders were set to sell and 49% were to buy.