On Thursday, the USD/JPY currency pair was trading sideways in the 109.90 area.
The pair could gain support of the 55- and 100-hour SMAs and extend gains in the nearest future.
This week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair consolidated at the 109.90 level. During Thursday morning, the pair continued to consolidate.Note that the exchange rate is supported by the 55– and 100-hour SMAs, currently located circa 109.90. Thus, it is likely that some upside potential could prevail in the market.
Note that that the currency pair could face the resistance level formed by the weekly R1 and the monthly R2 at 110.25. If the given level holds, a reversal south could follow.
Hourly Chart
As apparent on the chart, the pair surpassed the resistance of the 50.00 Fibo and the trend line of the 2018 and 2019 high levels.
Given that the pair is supported by the 55-day SMA, it is likely that some upside potential could prevail in the market.
Daily chart
Read More: Technical Analysis
Sentiment remained unchanged
Since Wednesday, 74% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 75% of pending orders were to sell and 25% were to buy.