After breaking the channel up pattern, the USD/JPY declined. However, the decline was short, as the pair found support in the 55-hour simple moving average. The SMA provided enough support to cause a surge, which reached the 112.00 level.
By the middle of Thursday's trading, the currency exchange rate fluctuated sideways below the 112.00 mark.
Economic Calendar
On Thursday, at the same time as the US GDP, the US weekly Unemployment Claims could also impact the USD. The GDP has moved the USD/JPY from 4.5 to 8.5 pips and the Unemployment Claims caused moves from 3.7 to 24.7 pips.
On Friday, at 14:00 GMT a notable move could be created by the US ISM Manufacturing PMI results. The event has caused 9.3 to 19.4 pip moves.
USD/JPY short-term review
In the near term future, the sideways trading could be ended by the approaching support of the 55-hour simple moving average. A surge above the 112.00 level would have no technical resistance as high as the weekly R3 simple pivot point at 113.02. Meanwhile, note that the 112.50 and 113.00 levels were highly likely going to provide resistance.On the other hand, a bounce off from the resistance of the 112.00 level and a decline would have to pass the support of the 55-hour SMA at 111.57, the weekly R1 simple pivot point at 111.34 and the 100-hour SMA at 111.20.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the USD/JPY broke the resistance of the June high level.Note the zone marked above the currency exchange rate. The zone is the 2019 and 2020 high level zone. The zone is expected to provide resistance to the currency pair.
Daily chart
On Wednesday, on the Swiss Foreign Exchange, traders were short, as 74% of open position volume was in short positions.
On Thursday, the sentiment was 71% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 63% to sell.