On Wednesday, the US Dollar surged by 55 pips or 0.51% against the Japanese Yen. A breakout occurred through the upper line of a descending channel pattern during yesterday's trading session.
Economic Calendar
On Thursday, the US Unemployment Claims could cause a move from 5.9 to 28.8 pips.
USD/JPY short-term review
Given that a breakout has occurred, buyers could continue to drive the price higher within this session. The potential target for the exchange rate will be near the 110.60 area.However, bullish traders could encounter resistance at 110.40 within the following trading session.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the currency exchange rate fails to break the resistance level near the upper line of a descending channel pattern at 110.50.In the case of the channel holding, the USD/JPY pair could continue to trend downward during the following trading sessions.
Daily chart
Read More: Technical Analysis
Traders are bearish
On Wednesday, traders on the Swiss Foreign Exchange were 61% short on USD/JPY.
On Thursday, the sentiment was 64% short.
Meanwhile, traders set up pending orders in the 100-pip range around the rate was 59% to sell.