Since the middle of Thursday's European trading hours, the USD/JPY currency exchange rate has been trading between the support of the 200-hour simple moving average and the resistance of the 55-hour simple moving average.
Future scenarios were depending on which of the simple moving averages fails.
Economic Calendar
The week will end with the publication of the US Retail Sales and US Core Retail Sales at 13:30 GMT. In November and December, these data sets caused an increase of volatility above the average.
Next week, data releases, which could impact the USD/JPY start on Thursday. At 13:30 GMT, the weekly US Unemployment Claims are set to be published. The rate has moved only from 3.6 to 8.7 pips.
On Friday, the US Services and Manufacturing PMIs could cause a notable adjustment in the USD value. The USD/JPY had moved from 3.0 to 28.6 pips on the release since August.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
On Thursday, the USD/JPY dropped to the support provided by the 200-hour moving average near 103.65.If the predetermined support holds, it is likely that the exchange rate could trade upwards in the short term. A possible upside target is the 104.00/104.20 area.
Meanwhile, note that the currency pair could face the resistance area formed by the 55– and 100-hour moving averages in the 103.85/103.95 area. If the given area holds, the pair could consolidate in the short run.
Hourly Chart
On the daily candle chart, the rate is trading near the 55-day simple moving average.
Meanwhile, take into account the 100-day simple moving average, the November high levels and the weekly R1 simple moving average. These levels are located from 104.53 to 104.70.
Daily chart
On Friday, on the Swiss Foreign Exchange around 54% of volume was in long positions.
At mid-day on Thursday, the sentiment was 56% long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 55% to buy.
Previously, the orders were 58% to sell.