Since the middle of Monday's GMT trading, the USD/JPY has been attempting to pass the resistance of the weekly R1 simple pivot point at 107.78.
In the near term future, it was expected that the rate would continue to trade sideways or decline, as the most close by technical support level was near the 107.40 mark.
Economic Calendar
The main scheduled macroeconomic data release of the week is bound to occur on Thursday, at 12:30 GMT. At that time the US employment data sets are scheduled to be published.
Note that some calendars show the ADP Non-Farm Employment Change and the US ISM Manufacturing PMIs as high impact events, but they have not caused an increase of volatility.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
If the resistance level holds, it is likely that a reversal south could occur. In this case the exchange rate could gain support from the 55-, 100– and 200-hour SMAs, as well the monthly PP in the 107.00/107.40 area.Otherwise, it is likely that some upside potential could continue to prevail in the market. Note that the nearest resistance level, formed by the Fibo 50.00% and the weekly R2, is located at 108.30.
Hourly Chart
On the daily candle chart, the rate has been testing the resistance of the 100-day simple moving average, which on Tuesday was located at the 107.91 level.
Daily chart
Read More: Technical Analysis
Traders are slightly bullish
On Tuesday, on the Swiss Foreign Exchange 54% of open position volume was in long positions
Meanwhile, 69% of set up pending trade orders in a 100-pip range around the exchange rate were set to sell.
The orders were 78% to sell on Monday.