On Thursday, the currency exchange rate declined below the zone of 109.38/109.23. It eventually found support in the 109.00 level and started a recovery.
During the morning hours of Friday's European trading, the USD/JPY had almost reached the resistance of the 109.60 level and the 55-hour simple moving average.
Economic Calendar
Notable events for this week are over.
Next week, on Tuesday, the US Consumer Price Index and Core Consumer Price Index could cause moves on all USD assets and pairs. The USD/JPY has moved from 4.8 to 27.1 pips on the release since November 2020.
On Thursday, the US Retail Sales and Core Retail Sales are also bound to influence the value of the US Dollar. The rate has moved from 9.3 to 16.7 pips on the release.
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
If the SMA and the 109.60 level provide resistance, the pair could once again decline to the 109.00 level and test its support. If the 109.00 would be passed, a potential target would be the weekly S2 pivot point at 108.77.On the other hand, if the rate manages to break the resistance of the 55-hour SMA and the 109.60 level, the USD/JPY would most likely encounter resistance in the weekly S1 simple pivot point at 109.76, the 61.80% Fibonacci retracement level at 109.83 and the 100-hour simple moving average.
Hourly Chart
On the daily candle chart, the rate is declining in the borders of a channel up pattern after bouncing off the resistance line of the pattern.
Meanwhile, next notable resistance cluster on the daily candle chart is the zone that surrounds the 112.00 mark. The zone consists of the 2019 and 2020 high levels. Zoom out to see how the rate acted near this level during both of those years.
Daily chart
On Thursday, traders were 72% short on USD/JPY. On Friday, 69% of volume was short.
The Swiss Foreign Exchange open positions have been mostly short for more than a month. Traders were expecting a retracement down.
However, the rate should go back to approximately 108.00 for these traders to break even.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 62% to sell.