A larger review of the pair's hourly chart was conducted on Thursday morning. It was spotted that the rate had been trading in a channel up pattern since September 23.
In the meantime, note that the 100-hour SMA failed to continue to push the rate up.
Economic Calendar
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
The week will end with a monthly data release. The US Average Hourly Earnings, Non-Farm Employment Change and the Unemployment Rate are scheduled for 12:30 GMT. USD/JPY has moved from 11.7 to 48.7 pips on the announcement.
Click on the link below to see the historical reaction tables.
USD/JPY short-term daily review
The USD/JPY currency pair has revealed a short-term ascending channel.From a theoretical perspective, it is likely that some upside potential could prevail in the market, and the exchange rate could re-test the upper channel line located circa 105.90.
In the meantime, it is unlikely that bears could prevail in the market, and the currency pair could decline below the support area formed by the monthly PP and the 200-hour SMA in the 105.25/105.34 range.
Hourly Chart
On the daily candle chart, it can be spotted that the 55-day simple moving average was providing resistance at 105.90.
Daily chart
On Thursday, traders of the Swiss Foreign Exchange were neutral, as 53% of all open position volume was in short positions.
On Wednesday, the sentiment was 52% short.
Meanwhile, trader set up pending orders in the 100-pip range were 57% to sell.