At mid-day on Friday, the USD/JPY pierced the resistance of a pivot point at 109.43. Afterwards, it had no resistance as high as the 61.80% Fibonacci retracement level at 109.83.
In regards to the aftermath of reaching the Fibo, the rate could trade sideways or reach for the simple pivot point at 110.76.
Economic Calendar
The week will end with the US Employment data set release on Friday 12:30 GMT.
During the week, the action on the economic calendars will start and most likely end on Wednesday. At 18:00 GMT the US Federal Reserve is scheduled to make a rate announcement and FOMC Statement.
Prior to that, a minor reaction could be caused by the US CPI at 12:30 GMT.
In addition, economic calendars show the US PPI and Unemployment Claims on Thursday. The last PPI release caused a move below normal volatility.
USD/JPY short-term daily review
At mid-day on Friday, the rate was set to reach for the 109.83 level, where a 61.80% Fibonacci retracement level was located at.
If the Fibo would fail to provide resistance, the rate could continue its surge as high as the pivot point at 110.76.
On the other hand, the resistance of the retracement level could hold. In this case scenario, the rate would then trade sideways below the 109.80 mark.
On the daily candle chart, the rate had left below it the daily simple moving averages. This factor indicate that the rate is overbought.
Daily chart
If the Fibo would fail to provide resistance, the rate could continue its surge as high as the pivot point at 110.76.
On the other hand, the resistance of the retracement level could hold. In this case scenario, the rate would then trade sideways below the 109.80 mark.
Hourly Chart
On the daily candle chart, the rate had left below it the daily simple moving averages. This factor indicate that the rate is overbought.
Daily chart
Read More: Technical Analysis
Traders short the pair
On Friday, on the Swiss Foreign Exchange 61% of open position volume was in short position.
Meanwhile, 80% of set up pending trade orders in a 100 pip range around the exchange rate were set to sell.