The USD/JPY has remained below the 110.00 level. In the meantime, the pair has been approached by the 55-hour SMA and it has made a dip below the 109.70 level.
In general, it was expected that another attempt to pass the 110.20 level was about to occur.
US employment data sets are scheduled to be published on Friday at 13:30 GMT. Moves from 19.5 to 49.8 pips have been caused by this event since September 2019.
In addition, next week's event have been analysed.
On Thursday, the US CPI data sets are set to be published at 13:30 GMT. The USD/JPY has moved from 8.2 to 16.3 pips because of the release.
On Friday the US Retail Sales data will be out also at 13:30 GMT. This event has caused moves on the USD/JPY pairs since September 2019 from 8.7 to 25.4 base points.
Read More: 10.02.-14.02 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tried to surpass the resistance level formed by the weekly R3 and the monthly R1 at 109.90. During Friday morning, the pair continued to test the given level.Note that the exchange rate is supported by the 55-hour SMA. Thus, it is likely that the rate could breach the given resistance and reach the psychological level at 110.20 in the short run.
If the given resistance level does not hold, it is likely that the US Dollar could continue to appreciate against the Japanese Yen in the short term. In this case a possible upside target is the psychological level at 110.20.
Hourly Chart
On the daily candle chart, the rate has left below it the daily simple moving averages. This factor indicates that the rate is overbought.
Daily chart
Read More: Technical Analysis
Short sentiment remains unchanged
Since Wednesday, 71% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 65% of pending orders were to sell and 35% were to buy.