On Wednesday, the USD/JPY currency pair declined to the 106.80 level.
During Thursday morning, the pair reversed north from the given level.
Economic Calendar
In regards to the USD/JPY during this week, there are a couple of scheduled macroeconomic data releases that could impact the currency exchange rate.
Today, the US Unemployment Claims at 12:30 GMT will be discussed by most market participants. However, this release usually causes moves below ten pips.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
On Wednesday, the USD/JPY currency pair declined to the 106.80 level. During today's morning, the pair reversed north.It is likely that the exchange rate could face the resistance formed by the 55– and 100-hour SMAs, as well the monthly PP in the 107.25 area. If the given resistance holds, it is likely that a reversal south could occur.
Meanwhile, it is unlikely that bulls could prevail in the market, and the currency pair could exceed the 200-hour moving average located near 107.50.
Hourly Chart
On the daily candle chart, it was previously noted that the passed daily simple moving averages could start to provide technical resistance.
On Friday, the 55-day SMA began to do so, as it acted as a resistance level near the 107.60 level.
Daily chart
Read More: Technical Analysis
Traders continue to short USD/JPY
On Wednesday, on the Swiss Foreign Exchange 51% of open position volume was in short position.
On Thursday, the sentiment was 54% short.
Meanwhile, 64% of set up pending trade orders in a 100-pip range around the exchange rate were set to buy.