The USD/JPY passed the support of the channel up pattern on Tuesday. However, the rate did not decline far, as it found support in the 100-hour simple moving average near 105.50.
In theory, the rate could surge and make another attempt to pass the resistance of the 105.80 level.
Economic Calendar
On Wednesday, at 12:15 GMT the ADP Non-Farm Employment Change data release could cause a move. For example, the USD/JPY has moved from 8.3 to 19.6 pips on the announcement.
On the same day, at 12:30 GMT the US are publishing GDP data. A move of 5.5 to 38.9 pips has occurred on the release. However, the 38.9 pip move was an anomaly caused by the coronavirus.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
The week will end with a monthly data release. The US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate are scheduled for 12:30 GMT. USD/JPY has moved from 11.7 to 48.7 pips on the announcement.
Click on the link below to see the historical reaction tables.
USD/JPY short-term daily review
In the near term future, the pair was expected to approach the resistance of the 105.80 level. This level caused a decline on Wednesday morning.In the case of this level being passed, the currency exchange rate could aim at the resistance of the 106.00 mark, which is strengthened by a monthly simple pivot point.
On the other hand, the rate could trade sideways between the support of the 100-hour SMA at 105.50 and the 105.80 level's resistance.
Hourly Chart
On the daily candle chart, it can be spotted that the 55-day simple moving average was providing resistance at 105.90. In addition, the SMA could move lower and strengthen the 105.80 level.
Daily chart
On Tuesday, traders of the Swiss Foreign Exchange were neutral, as 53% of all open position volume was in short positions.
On Wednesday, the sentiment was 52% short.
Meanwhile, trader set up pending orders in the 100-pip range were 63% to sell.