After many attempts, the USD/JPY managed to pass the resistance of the 50.00% Fibonacci retracement level, which was located at the 109.58 level.
By the middle of Friday's London trading session, the rate had reached the 109.65 level.
In regards to next week, on Tuesday, the US Consumer Price Indices might cause a minor move on the US Dollar pairs.
Meanwhile, next week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 13.01-17.01 Event Historical Reactions
USD/JPY short-term daily review
In general, the rate has broken the last technical resistance, which it faced. It could surge to the 110.00 level, which could provide psychological resistance.However, the currency pair is overbought. The recent fundamental surges have left far behind the rate the hourly simple moving averages. Due to that reason, a consolidation by trading sideways or declining could occur.
Hourly Chart
As expected, technical levels resumed impacting the rate on Thursday. The resistance of the 50.00 Fibo and the trend line of the 2018 and 2019 high levels held the pair down.
However, on Friday morning, these levels were passed. Despite that, it does not indicate that a surge is about to occur. The Fibo had been passed in November and December. None of those breaks of the resistance resulted in a surge, as the pair retreated after touching the 109.70 level.
Daily chart
Read More: Technical Analysis
Short sentiment continues to increase
By the middle of Thursday, sentiment was 62% short.
On Friday, 68% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 73% of pending orders were to sell and 27% were to buy.