Despite passing the 105.50 mark, the USD/JPY did not continue to gain, as the 105.67 level provided resistance and caused a retracement back down.
At mid-day on Friday, the rate had recovered and once again tested the 105.67 level.
Economic Calendar
Next week, the USD/JPY could move due to the US Consumer Price Index data and the US Unemployment Claims.
The US Consumer Price Index and the Core Consumer Price Index will be published on Wednesday at 13:30 GMT. Since September, this publication has caused moves from 4.7 to 8.9 pips.
On Thursday, at 13:30 GMT the US weekly Unemployment Claims will be published. The USD/JPY has recently moved from 3.3 to 10.4 pips on the publications.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
It is unlikely that some downside potential could prevail in the market due to the support area formed by the 55– and 100-hour SMAs, as well the weekly R1 and the Fibo 23.60% in the 105.03/10.28 range.The exchange rate could continue to extend gains in the short term. In this case the rate would have to exceed the weekly R2 at 105.80. If the predetermined resistance holds, the pair could trade sideways.
Hourly Chart
On the daily candle chart, on Friday, the rate broke the resistance of the 200-day simple moving average. The SMA had moved lower to the 105.58 level.
Daily chart
On Tuesday, on the Swiss Foreign Exchange 56% of open position volume was in short positions.
On Wednesday, 59% of volume was short, and by the middle of Thursday they were 63% short.
On Friday, 66% short.
Bulls have been taking profits, as new short positions are opened in expectations of a retracement back down.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 73% to sell.
Previously, on Thursday the orders were 71% to sell. Before that, on Wednesday, 61% to sell