It is likely that the Greenback could trade sideways against the Japanese Yen.
Economic Calendar
Today, US employment data will be published. The event will have three numbers being revealed – the Average Hourly Earnings, Non-Farm Employment Change and Unemployment Rate.
Due to each of the numbers impacting the rate differently by pushing the value of the USD up or down and with a different strength, the event has a wide range. Namely, since April the USD/JPY pair has moved from 13.4 to 38.9 pips due to the US labour data.
Next week there are couple of events that could move the USD/JPY pair.
On Sunday, September 8, the Japanese GDP data will be published at 23:50 GMT.
On Wednesday, September 11, the US Producer Price Index data will be released at 12:30 GMT. Since February, the USD/JPY rate has moved from 3.9 to 31.9 pips.
On Thursday, September 12, the US Consumer Price Index will be published at 12:30 GMT. Last time, this data release caused a 23-pip move.
Next week will end with the US Retail Sales data release at 12:30 GMT on Friday, September 13.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair reached the resistance level formed by the Fibonacci 23.60% retracement at 107.02. During today's morning, the pair was testing the given resistance.On the one hand, the exchange rate could surpass the given resistance level and remain to go upwards. A possible upside target is the 107.40/107.60 range.
However, note that the rate has to surpass the weekly R1 at 107.19 as well. If the given level holds, the Greenback could consolidate against the Japanese Yen.
It is unlikely that bears could prevail, and the pair could drop lower than the 106.24/106.70 range due to the support cluster formed by the 55-, 100– and 200-hour SMAs, as well the monthly PP.
Hourly Chart
On the daily candle chart, the pair trades below the daily simple moving averages. It is an indicator of the rate being oversold.
Meanwhile, note that the rate has been trying to surpass the resistance level formed by the Fibonacci 23.60% retracement at 106.98 since the beginning of August. If the given resistance holds, some downside potential could prevail in the market.
Daily chart
Read More: Technical Analysis
Volume of long positions decreased
On Friday, 63% of USD/JPY open position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were neutral. Namely, in the 100-pip range 59% of pending orders were set to sell and 41% were to buy.
The numbers have not change since Thursday.