Since Friday, the USD/JPY has been respecting simple moving averages. The situation changed just before mid-day on Monday. At that time, no SMA or pivot point managed to provide support, as the rate dropped to the 105.00 mark.
Moreover, just prior to the fall, the rate had moved above all technical resistance levels and appeared to be set for additional gains.
Economic Calendar
This week, only the US Preliminary GDP release on Thursday at 13:30 GMT could cause a notable sudden move.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
Future forecasts depend on whether or not the 105.00 mark provides support.In the case of the 105.00 holding, the USD/JPY could recover and surge back up to the simple moving averages and the weekly simple pivot point at 105.54. These levels could provide resistance. However, take into account that they failed to keep the rate from falling on Monday.
On the other hand, if the 105.00 mark fails, the rate could look for support immediately in the weekly S1 simple pivot point at 104.86. If the pivot point does not provide support, the pair could reach for the 104.50 mark.
Hourly Chart
On the daily candle chart, note that the 200-day simple moving average failed to provide support to the rate at 105.50.
Meanwhile, on Tuesday it was spotted that the currency exchange rate has been surging in a channel up pattern since the start of 2021. The lower trend line of the pattern was supporting the 105.00 mark.
Daily chart
On Friday, on the Swiss Foreign Exchange 66% of open position volume was in short positions.
During Monday's trading, the sentiment was 63% short. The traders of the Swiss Foreign Exchange were most likely in profit.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 63% to buy.