By the middle of Wednesday's trading session the USD/JPY continued to trade below the 111.40 level. The trading below this level was previously expected.
The sideways trading is set to end in the near future as the combination of the support of the 55 and 100-hour simple moving averages should push the pair higher.
The Bureau of Labor Statistics released Non-Farm Employment Change data lower-than-expected of 20K compared to forecast 180K. Note, that the Average Hourly Earnings and the Unemployment Rate were released at the same time with the Non-Farm Employment Change.
President Donald Trump retweeted: "This is as good a time as I can remember to be an American Worker. We have the strongest economy in the world." Stuart Varney, So true! ".
US data incoming at 12:30 GMT
The week's important events will end already on Wednesday. At 12:30 GMT the US Durable Goods Orders and the US Producers Price Index will be released.
For more information watch the weekly calendar analysis stream on our YouTube channel.
USD/JPY short term daily review
During Tuesday's trading session, the 55-hour simple moving average supported the currency exchange rate to keep the rate to stay at 111.20. On Wednesday morning, the rate broke the resistance of the 100-hour SMA to trade at the 111.32 mark.In regards to the near-term future, it is expected that the 55-hour and the 100-hour SMAs will support the rate to break the resistance of the weekly pivot point at 111.37. If the rate breaks the resistance level, then it will end the trading session at the 111.40 level.
However, today's US Core Durable Goods Orders, Durable Goods Orders, US PPI data release at 12:30 GMT could push the rate fall to 111.00.
Hourly Chart
On the daily chart, the rate was being held back by additional technical resistance levels. The 100 and 200-day simple moving averages were located at 111.30 and 111.40 levels.Meanwhile, the pair's recent decline has not touched the lower trend line of the dominant channel up pattern. The rate, in theory, should reach it and bounce off it.
Daily chart
Trader open position volume on the Swiss Foreign Exchange remained short, as 60% of the volume was short on USD/JPY.
Meanwhile, in the 100-pip range around the pair trader set up pending orders were set to sell. Namely, 54% of orders were short.
Note that traders had gone short even before the bounce off from the 112.00 level began. The open positions were most likely in the green since then.