Despite not declining on Wednesday, as forecast, the USD/JPY continued to trade in the recently discovered channel down pattern.
By the middle of Thursday's trading, the upper trend line of the pattern had been tested six times.
Economic CalendarOn Thursday, at 12:30 GMT, the US Unemployment Claims are scheduled to be released. Most likely, the event would reveal another major decline in US employment.
Also on Thursday, at 13:45 US Manufacturing PMI could cause a move, as in February and March it created large moves.
Last but not least, a notable reaction of above then pips could be created by the US Durable Goods orders on Friday at 12:30 GMT.
USD/JPY short-term daily review
On Thursday morning, the currency exchange rate declined below the support of the 55, 100 and 200-hour SMAs and the weekly simple pivot point that were located from 107.70 to 107.64.In theory, the rate should decline, as it had no technical support, which could stop a decline. A theoretical decline could reach for the lower trend line of the channel down pattern near the 107.30 zone.
However, a decline was expected due to the same reasons already on Wednesday. The decline on that day was stopped by the psychological support of the 107.50 level.
Hourly Chart
On the daily candle chart, the rate faces the resistance of the daily simple moving averages. The SMAs were located from 108.29 to 108.82 levels.
Daily chart
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Sentiment is back at Tuesday's level
On Tuesday, 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
By the middle of Wednesday's GMT trading hours, the sentiment was 54% short. On Thursday, the sentiment was once again 59% short.
Traders had reopened their short positions after taking profits on Wednesday.