The USD/JPY has continued to decline, as the support of the 107.20 level eventually gave in and let the rate fall.
By the middle of Friday's GMT trading hours, the currency exchange rate had reached the 106.75 level and had no technical support as low as 106.46.
Economic Calendar
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
Next week, data releases are scheduled to start on Tuesday. However, the US CPI data sets have not caused notable moves. Normal volatility remains intact during the release.
On Thursday, the publication of the US Retail Sales and Unemployment Claims at 12:30 GMT.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
It is likely that the exchange rate could be pressured by the Fibo 38.20% at 106.86, thus, it is likely that some downside potential could prevail in the market. Note that the nearest support—the weekly S2, is located at 106.46.On the other hand, it is likely that the currency pair could trade sideways, trying to exceed the weekly S1 at 106.99 within the following trading session.
Hourly Chart
On the daily candle chart, the rate trades below the additional resistance of the 55 and 100-day simple moving averages that are located at 107.38 and 107.67.
Daily chart
On Friday, on the Swiss Foreign Exchange 60% of open position volume was in short positions
Meanwhile, trader set up pending orders in the 100-pip range were bullish, as 74% of orders were to buy.
Previously, the orders were 63% to buy on Thursday.