Since Wednesday's morning trading hours, the USD/JPY has traded sideways below the 110.80 level. The rate faces a resistance zone from 110.80 to 111.00.
In the meantime, the support of the 55-hour simple moving average had caught up with the rate.
Economic Calendar
The week will end on Friday with the top event, as the US Employment data is set to be released at 13:30 GMT. The event will consist of three data sets being released. Combined they have caused moves from 19.7 to 34.0 pips on the charts.
Next Monday, at 15:00 GMT, minor USD moves could be created by the publication of the US ISM Non-Manufacturing Purchasing Managers Indice. The USD/JPY has moved from 3.0 to 16.0 during the last half year.
On Wednesday, at 19:00 GMT, the US Federal Open Markets Committee is set to publish its Meeting Minutes. The rate had the initial reaction of 3.8 to 10.5 base points.
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
In the case of the 55-hour simple moving average providing support and causing a surge, the rate could pierce the resistance of the 110.80 to 111.00 zone. A following surge might reach for the resistance of the weekly R3 simple pivot point at 111.68 and afterwards the 112.00 mark.On the other hand, if the 55-hour SMA fails, the rate could decline to the support of the weekly R1 simple pivot point at 110.24 and the 100-hour simple moving average.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the channel up pattern, which guided its surge since December 21. It can be observed that the upper trend line of the pattern have in on the rate's third attempt to pass it.
Next notable resistance cluster on the daily candle chart is the zone that surrounds the 112.00 mark. The zone consists of the 2019 and 2020 high levels. Zoom out to see how the rate acted near this level during both of those years.
Daily chart
On Wednesday, traders were 71% short on USD/JPY. On Thursday, the sentiment was 75% short.
The Swiss Foreign Exchange open positions have been mostly short for a month. It appears that traders expect a larger retracement back down, despite the rate gaining new heights.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 54% to buy.
Previously, the orders were also 54% to buy.