USD/JPY finds support in 50-day SMA

Note: This section contains information in English only.
Source: Dukascopy Bank SA
On Tuesday morning, the US Dollar manged to pass the resistance of the 50, 100 and 200-hour simple moving averages and the weekly simple pivot point at 133.57 against the Japanese Yen. By the start of the days US trading, the pair had reached above the 134.50 level and the 134.35/134.55 zone.

In the meantime, it was spotted that the rate's recent recovery appears to have occurred in an ascending channel pattern.

Economic Calendar



On Wednesday, at 12:30 GMT the US Retail Sales and Core Retail Sales data is set to impact the rate through the value of the US Dollar.

Namely, a decreasing or flat retail sales change month on month is set to cause an adjustment of the USD to the downside. Meanwhile, a higher than expected reading could be the catalyst of a surge of the Dollar.

At 18:00 GMT on Wednesday, the US Federal Reserve Meeting Minutes are bound to be published. The details included in the document might be the reason for a USD move.

Hourly Chart
If the pair respects the channel's upper trend line and bounces off it, the rate could look for support in the 134.35/134.55 zone, prior to descending to the 134.00 level and the 200-hour simple moving average near it.

On the other hand, a surge and breaking of the pattern is highly likely to be slowed down by the 135.00 level, prior to approaching the resistance zone at 135.35/135.60, the 135.50 mark and the weekly R1 simple pivot point at 135.40.

USD/JPY daily chart's review

On the daily candle chart, the pair has been trading between the support of the 100-day simple moving average with the 131.25/132.00 zone and the resistance of the 50-day simple moving average near the 135.00 mark.

Daily chart




Traders are short

On Monday, on the Swiss Foreign Exchange, traders were 70% short as that amount of open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to buy the USD against the JPY.

On Tuesday, traders were still 70% short and pending orders were 60% to sell.

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