On Monday, the USD/JPY currency pair was testing the resistance formed by the 55- and 100-hour SMAs, as well the weekly PP.
If the given resistance holds, it is likely that a reversal south could occur in the nearest future.
This week, the US Durable Goods Orders on Monday at 13:30 GMT could cause a move.
Meanwhile, this week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 23.12-27.12 Event Historical Reactions
USD/JPY short-term daily review
On Friday, the USD/JPY currency pair failed to surpass the 109.50 level. During today's morning, the pair reversed south.Note that the exchange rate is pressured by the 55– and 100-hour moving averages. Thus, it is likely that some downside potential could prevail in the market. However, note that the rate could gain support of the 200-hour SMA at 109.32.
If the given support holds, it is likely that the US Dollar could consolidate against the Japanese Yen in the nearest future. Otherwise, it is likely that the currency pair could decline to the weekly S1 at 109.21.
Hourly Chart
On the daily candle chart, the pair has bounced off the resistance of a 50.00% Fibonacci retracement level at 109.60.
Daily chart
Read More: Technical Analysis
Traders remain short
On Monday, 73% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
The proportion slightly changed on Friday, as 71% was short.
Meanwhile, trader set up pending orders were bearish. In the 100-pip range 72% of pending orders were to sell and 28% were to buy.