In general, the surge was expected to pass the 108.00 mark and reach for the weekly pivot point at 108.22.
Economic Calendar
The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.
This event has caused almost insignificant moves since April, as the USD/JPY moved from 7.2 to 11.7 pips. Due to that it is concluded that this event that is tagged as high impact on economic calendars, is not notable enough to be watched.
Meanwhile, the historical data tables for all of the next week's notable releases have been published. To see the publication, click on the link below.
Read More: 30.09-06.10 Event Historical Reactions
USD/JPY short-term daily review
As the rate faced no resistance on Friday morning and had done a consolidating decline prior to surging, it was expected to move higher.The surge of the rate was expected to first test the psychological resistance of the 108.00 level and then aim at the pivot point, which was located at the 108.22 level.
On the other hand, the rate might wait for the support of the hourly simple moving averages to push the pair up.
Meanwhile, take into account that the reversal of direction that occurred on Thursday provided a needed reference point to chart the rates recent surge in a channel up pattern.
Hourly Chart
On the daily candle chart, the pair has passed the resistance of the 100-day simple moving averages, which was left behind at 107.80. In theory, the SMA should start providing support to the currency pair.
Meanwhile, the ascending channel was also added to the daily candle chart.
Daily chart
Read More: Technical Analysis
Sentiment Remains Unchanged
Since Thursday, 58% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 62% of pending orders were set to sell and 38% were to buy.
On Thursday, 54% of orders were to sell.