The USD/JPY managed to break the resistance of the monthly R1 at 107.78, on Tuesday.
However, the rate reversed its direction at 108.10 and began a decline. By the middle of Wednesday's GMT trading hours, the rate had almost reached the 107.50 level.
Economic Calendar
The main scheduled macroeconomic data release of the week is bound to occur on Thursday, at 12:30 GMT. At that time the US employment data sets are scheduled to be published.
On Wednesday, note that some calendars show the ADP Non-Farm Employment Change and the US ISM Manufacturing PMIs as high impact events, but they have not caused an increase of volatility.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
On Tuesday, the USD/JPY currency pair failed to exceed the 108.00 level. During today's morning, the pair declined below 107.60.It is likely that some downside potential could prevail in the market, as the exchange rate is pressured by the 55-hour SMA near 107.65. In this case the rate could gain support from the 200-hour SMA near 107.10.
On the other hand, it is likely that the currency pair could gain support from the 100-hour SMA near 107.40. Thus, it is likely that the pair could reverse north and target the resistance formed by the weekly R2 and the Fibo 50.00% at 108.30.
Hourly Chart
On the daily candle chart, the rate has the additional support of the 55-day simple moving average at 107.40.
Daily chart
Read More: Technical Analysis
Traders go short
On Tuesday, on the Swiss Foreign Exchange 54% of open position volume was in long positions
By the middle of Wednesday, traders had gone short, as 54% of volume was in short positions.
Meanwhile, 53% of set up pending trade orders in a 100-pip range around the exchange rate were set to buy.
The orders were 69% to sell on Tuesday.