Yesterday, the USD/JPY currency pair tumbled to the psychological level at 106.70.
From a theoretical perspective, it is likely that the pair could continue to trade downwards within a newly revealed falling wedge pattern.
Economic Calendar
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
On Wednesday, the USD/JPY currency pair tumbled to the 106.70 level. During today's morning, the pair was testing the resistance formed by the 55– and 100-hour SMAs near 107.10.If the given resistance holds, it is likely that some downside potential could prevail in the market, and the exchange rate could re-test the 106.70 mark.
Meanwhile, note that the rate could gain support from the Fibo 38.20% at 106.86. Thus, it is likely that the US Dollar could consolidate against the Japanese Yen in the short run.
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 in the 107.50 area.
Daily chart
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Traders are relatively neutral
On Thursday, on the Swiss Foreign Exchange 53% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were neutral, as 51% of orders were to buy.