During Friday morning, the USD/JPY currency pair breached the short-term ascending channel south and dropped to the weekly S1 at 107.12.
It is likely that the pair could consolidate near the given support in the short run.
Economic Calendar
Traditionally, the first week of the month is busy on the economic calendar.
On Monday, June 1, the Institute for Supply Management will release the US ISM Manufacturing PMI survey results at 14:00 GMT.
On Wednesday, June 3, two macroeconomic events from the US are expected: the ADP Non-Farm Employment Change at 12:15 GMT and the ISM Non-manufacturing PMI at 14:00 GMT.
The week will end with the US Employment data set release on Friday 12:30 GMT.
USD/JPY short-term daily review
On Thursday, the USD/JPY currency pair declined to the lower line of the short-term ascending channel. During today's morning, the pair breached the given channel south and dropped to the weekly S1 at 107.12.
If the given support level holds, it is likely that a reversal north could occur, and the exchange rate could exceed the psychological level at 107.40.
On the other hand, it is likely that the US Dollar could consolidate against the Japanese Yen in the short term.
If the given support does not hold, it is likely that the pair could target the Fibo 38.20% at 106.86.
On the daily candle chart, the exchange rate remains to be under pressure of the 55-day moving average and the monthly PP at 107.80.
Daily chart
If the given support level holds, it is likely that a reversal north could occur, and the exchange rate could exceed the psychological level at 107.40.
On the other hand, it is likely that the US Dollar could consolidate against the Japanese Yen in the short term.
If the given support does not hold, it is likely that the pair could target the Fibo 38.20% at 106.86.
Hourly Chart
On the daily candle chart, the exchange rate remains to be under pressure of the 55-day moving average and the monthly PP at 107.80.
Daily chart
Read More: Technical Analysis
Traders remain short
On Friday, trader open position volume on the Swiss Foreign Exchange was 67% short.