On Wednesday, the USD/JPY traded in limbo around the weekly R1 at 108.91.
In general, the rate was still waiting for the technical support of the 55-hour simple moving average to push it higher to the pivot point at 109.32.
US Bureau of Labor Statistics released the US ISM Non-Farm Employment Change data, which came out better-than-expected of 244K compared with the forecast of 162K.
According to the official release: "Notable job gains occurred in professional and business services, in health care, and in transportation and warehousing."
Minor US data and Fed Meeting Minutes
This week the data that will impact the USD/JPY will come from the US. There are FOMC Meeting Minutes incoming and a couple of minor data releases.
The FOMC Meeting Minutes will come first, as they will be published at 18:00 GMT on Wednesday. The event has caused moves on the USD/JPY from 7.9 to 29.1 pips since November 2018.
On Thursday, the US CPI and Core CPI data will be published at 12:30 GMT. The data release has caused moves from 11.5 to 17.5 pips since February.
On Friday, the US Producers Price Index will be released at 12:30 GMT. The event has caused moves from 3.9 to 31.9 pips. Although, note that the 31.9 pip move was actually caused by other announcements being made at the same time as the PPI was published.
For more information watch this week's Economic Calendar Analysis
USD/JPY short-term daily review
During the previous trading session, the USD/JPY currency pair tested the resistance level formed by a combination of the weekly and monthly R1s at 108.90.Given that the exchange rate is supported by the 55-hour SMA, currently located at 108.75, it is likely, that bulls could prevail in the market. The pair could surpass the given resistance and target the weekly R2 at the 109.32 mark.
On the other hand, the rate could trade sideways around the given resistance level in the nearest future.
It is unlikely, that the pair could tumble lower than 108.44 mark due to the support of the 100-hour SMA and the Fibonacci 38.20% retracement.
Hourly Chart
On the daily candle chart, the rate has broken a 38.20% Fibonacci retracement level at 108.43.
In general, the rate was heading to the resistance of the 55-day simple moving average, which on Wednesday was located at the 109.17 level.
Daily chart
By the middle of Wednesday's trading session, on the Swiss Foreign Exchange 72% of trader open USD/JPY position volume was in long positions. Previously, the sentiment was 74% long.
These traders were still profiting, despite some closing their long positions.
Meanwhile, trader set up pending orders were neutral, as 50% of pending commands in the 100-pip range were set to buy and 50% were to sell.