The decline of the USD/JPY currency exchange rate stopped at the August low level zone just above the 109.10 level. On Thursday the rate recovered to find resistance in the late August low level zone that is located at 109.42/109.50.
Economic Calendar
On Thursday, at 12:30 GMT, the US Retail Sales and Core Retail Sales data sets are set to be released to the public.
Note that at the same time the US Unemployment Claims are scheduled to be released.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
If the recovery of the currency pair manages to pass the 109.42/109.50 zone, it could reach for the cluster of technical levels near 109.60. Starting from the 109.57 up to the 109.63 level there are located previous September low levels, the 55-hour simple moving average and the weekly S1 simple pivot point.However, a bounce off from the late August low levels at 109.42/109.50 would result in the rate once again testing the early August low level and the weekly S2 simple pivot point in the 109.18/109.11 zone.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has broken free from trading near the 55 and 100-day simple moving average. From a technical perspective, the rate was squeezed in between the SMAs and the US CPI release provided the needed push for it to break out.In regards to the future, if the pair continues to decline, it would look for resistance in the zone that surrounds the 109.00 mark.
Daily chart
Since Wednesday, the sentiment had decreased to 63% short, as 63% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 68% to buy on Thursday.
On Wednesday, 73% of orders in that range were to buy the pair.