On Wednesday, the USD/JPY was expected to fall to the 106.10 level. By midnight, the rate had reached the 105.80 level.
On Thursday morning, the pair traded between the support of the 200-hour SMA near 105.90 and the resistance of the monthly pivot point at 106.09.
Economic Calendar
On Thursday, the US Preliminary GDP and the US Unemployment claims are set to be published. Due to these events usually not being released at the same time, the past reactions need to be combined.
Namely, in the case of the same direction surprise the volatility pips need to be added one to another. On the other hand, different results shown by each data set could cancel one another out.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
The currency exchange rate is expected to trade sideways between the 106.10 and 105.90 levels. Afterwards, the rate could continue its decline.A continuation of a decline could be caused by the additional resistance of the 55-hour simple moving average, which should decline and approach the pair.
If the currency pair declines, it should first pass the support of the 200-hour SMA and the weekly simple pivot point near 105.90. Below this level, the most close by support was the lower trend line of a large scale channel up pattern near 105.60.
On the other hand, the resistance levels might fail at starting a decline. In this case scenario, the pair would pass the monthly pivot point at 106.09 and the 55-hour SMA near 106.20.
Hourly Chart
On the daily candle chart, the pair has once again bounced off the resistance of the 55-day simple moving average near 106.65.
Meanwhile, the 100-day SMA was providing additional resistance at 107.00.
Daily chart
Since Tuesday, traders of the Swiss Foreign Exchange were neutral, as 51% of all open position volume was short.
On Wednesday morning the situation changed, as the 58% of open position volume was short.
Meanwhile, trader set up pending orders in the 100-pip range were 54% to sell.
Previously, the orders were 51% to sell.