By the middle of Friday's GMT trading hours, the USD/JPY had pierced all of the resistance levels, which faced it from 104.00 to 106.30.
If the surge would continue, the rate could reach the 107.65 mark.
Economic CalendarNext week, on Tuesday, the US Retail Sales could cause a small move in the markets at 14:30 GMT.
On Wednesday, the event of the week is set to occur, as at 20:00 GMT the FOMC Statement and Federal Funds Rate are going to be published.
Meanwhile, Dukascopy Analytics are not publishing the historical reactions this week, as the market environment has changed to such a degree that the historical data is unlikely to be relevant.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair raised to the 105.50 level. During Friday morning, the pair raised to the resistance level formed by the weekly PP and the monthly S1 at 106.32.If the given resistance level holds, it is likely that a reversal south could occur in the nearest future. In this case it is unlikely that the exchange rate could decline below the weekly S2 at 102.74.
Otherwise, it is likely that the US Dollar could appreciate against the Japanese Yen in the short term. In this case the currency pair would have to surpass the weekly R1 at 107.65.
Hourly Chart
On the daily candle chart, the currency exchange rate was recovering, as it retraced back up to the daily simple moving averages.
Daily chart
Read More: Technical Analysis
Long sentiment increases
On Thursday, 58% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Friday's GMT trading hours, the sentiment was 68% long. Traders had bought the recent breaking of short term resistance levels.