On Thursday, the USD/JPY currency exchange rate found support in the weekly and monthly pivot points just above the 106.00 level.
In the near term future, the rate a couple of possible scenarios.
Economic Calendar
On Thursday, at 12:30 GMT a group of minor US data sets is scheduled to be published. The set will consist of US Producers Price Index, Core Price Index and Unemployment claims. In most cases these data releases cause insignificant moves.
The week will end with the publication of the US Consumer Price Index and Core Consumer Price Index changes. This event had been insignificant and did not cause increases of volatility since April. However, in August, there were notable moves on all USD pairs.
Click on the link below to see the historical reaction tables.
USD/JPY short-term daily review
It is likely that some downside potential could prevail in the market, as the exchange rate is pressured by the 55-, 100– and 200-hour moving averages in the 106.10 area.On the other hand, it is likely that the rate could gain support from the weekly and monthly PPs at 106.00 and trade sideways within the following trading session.
Hourly Chart
On the daily candle chart, the pair is testing the resistance of the 55- and 100-day simple moving averages. These SMAs caused the decline of the rate in late July, and kept the rate down throughout August.
Daily chart
On Thursday, traders of the Swiss Foreign Exchange were bearish, as 63% of all open position volume was in short positions.
On Wednesday, 62% of volume was short at mid-day.
Meanwhile, trader set up pending orders in the 100-pip range were 57% to buy.