In general, the rate was expected to get squeezed in between the resistance of the 55 and 100-hour simple moving averages from above and the support of the 200-hour SMA.
Economic Calendar
There are no more notable events scheduled to occur during this week. On Friday, Dukascopy Analytics will publish an update to the Economic Calendar section, analysing next week's events.
USD/JPY short-term daily review
On the hourly candle chart, on Thursday, the USD/JYP was expected to get squeezed in by the support of the 200-hour simple moving average near 107.90 and the resistance of the 55 and 100-hour SMAs, respectively, at 108.15 and 108.10.If the rate breaks out from the squeeze to the upside, it would test the resistance of a 38.20% Fibonacci retracement level at 108.45.
On the other hand, a break out down would test the pivot point at 107.73.
Hourly Chart
On the daily candle chart, the pair has broken the resistance of the 100-day simple moving average. After the technical level was passed, it began to provide support at 108.00.
Daily chart
Read More: Technical Analysis
Sentiment remains unchanged
Since the middle of Wednesday's London trading, the open USD/JPY position volume on the Swiss Foreign Exchange was 56% long.
Meanwhile, trader set up orders were neutral. Namely, in the 100-pip range 51% of pending orders were set to buy and 49% were to sell.
Previously, the orders were 67% to sell.