USD/JPY declines to 136.00

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The fundamental drop of the US Dollar on Tuesday resulted in the USD/JPY currency exchange rate declining to the 136.00 level. Afterwards, a failed recovery found resistance in the 137.00 mark. During Wednesday's European morning hours, the currency pair had returned to the 136.00 level.

Economic Calendar



On Thursday, at 12:30 GMT the US quarterly Preliminary GDP data is set to cause a move in the US Dollar and all of financial markets.

Meanwhile, note a major event this week, which is above data releases. On Friday, throughout the day the heads of the global central banks are meeting at the Jackson Hole symposium in the mountains of the United States. Namely, the head of the US Federal Reserve is hosting an event, where all the policymakers of the world will meet and synchronize their plans.

Hourly Chart
If the US Dollar continues to decline against the Japanese Yen, the currency pair might look for support in the weekly simple pivot point at 135.55, the 135.50 mark and the zone that marks previous August high levels at 135.35/135.55. In addition, the zone is being approached by the 200-hour simple moving average near 135.30.

However, a recovery of the rate might face resistance in the combination of the 50 and 100-hour simple moving averages and the 137.00 mark, prior to the rate reaching back up to the 137.45/137.70 range.

USD/JPY daily chart's review

On the daily candle chart, the pair has broken the resistance of the 50-day simple moving average and is approaching the July high level zone at 138.60/139.40. Above the zone, the 140.00 mark is expected to act as resistance.

Daily chart




Short sentiment increases

On Tuesday, on the Swiss Foreign Exchange, traders were 71% 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 51% to buy the USD against the JPY.

On Wednesday, the sentiment was 74% short and pending orders were 56% to sell. Trades appear to be expecting a decline of the USD/JPY.

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