The resistance of the zone from 109.60 to 109.70 managed to hold. On Thursday, the USD/JPY passed support levels near the 109.50 mark and started to sharply decline.
The pair had no support levels as low as the 109.17 level, which it could reach in the near term future.
This week, the pair could be impacted only by one data release. On Friday, the US Final GDP is set to be published at 13:30 GMT. However, since September 2018, the USD/JPY has moved only from 6.3 to 8.9 pips on the announcements.
Meanwhile, the week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 16.12-20.12 Event Historical Reactions
USD/JPY short-term daily review
From a theoretical point of view, it is likely that a reversal south could occur in the nearest future. In this case the exchange rate could target the support level formed by the weekly PP and the 200-hour SMA at 109.17.Hourly Chart
On the daily candle chart, the rate is testing the resistance of a 50.00% Fibonacci retracement level at 109.60. The same retracement level stopped a surge in late November.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Tuesday, 72% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were neutral. In the 100-pip range 50% of pending orders were to sell and 50% were to buy.