The resistance zone of 103.70 was passed and the rate immediately reached the December 17 and 21 high level of 103.90. However, this level held and caused a decline.
By the start of the US trading hours, the rate had found support in the 100-hour SMA at 103.60 and was headed back to the 103.90 level.
Economic Calendar
On Thursday, at 13:30 GMT, the US Jobless Claims could cause a minor move on all USD pairs and assets that are traded in US Dollars.
USD/JPY short-term daily review
By the start of Tuesday's US trading hours, the USD/JPY was once again testing the resistance of the 103.70 zone.In the case of the 103.70 zone being passed the rate would aim at the resistance of the 103.90 level. If the 103.90 mark fails to provide resistance, the next targets would be first the 104.00 level and afterwards the 104.22 level, where the weekly R2 simple pivot point was located at.
On the other hand, if the pair fails to surge, the 55 and 100 hour SMAs together with the weekly simple pivot point could provide support from 103.65 to 103.58. If these levels fail, the 200-hour SMA at 103.50 could be reached.
Hourly Chart
On the daily candle chart, the rate appears to be slowly retracing back to the 55-day simple moving average, which on Tuesday was strengthening the resistance of the pivot point at 104.22.
Daily chart
Read More: Technical Analysis
Traders are long on USD/JPY
On Monday, on the Swiss Foreign Exchange 71% of volume was in long positions. On Tuesday, the sentiment was 70% long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 69% to sell.