The USD/JPY has broken out of the descending triangle pattern, the rate is heading down. At mid-day on Friday, the pair was aiming at the 103.00 level.
However, take into account that the decline could be slowed down by the weekly S3 simple pivot point at 103.10.
Economic Calendar
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
Next week, on Thursday, at 13:30 GMT USD pairs could move because of the release of the US Consumer Price Index and the Unemployment Claims. The rate could move up to 10 pips on the announcement.
On Friday, the US Producer Price Index are scheduled to be released at 13:30 GMT. The USD/JPY has moved from 4.7 to 14.8 pips during the release of the PPI.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
It is likely that some downside potential could prevail in the market in the short term. In this case the exchange rate could target the psychological level at 102.50.Meanwhile, note that the currency pair could gain support from the weekly S3 at 103.10. Thus, a reversal could occur, and the pair could try to exceed the weekly S1 at 104.13.
Hourly Chart
On the daily candle chart, one can observe the break out from the descending triangle pattern. It can be clearly seen that the break out occurred in a 100 base point move downwards.
In the near term future, in theory the decline should continue.
Daily chart
On Thursday, traders of the Swiss Foreign Exchange were bullish, as 59% of all open position volume was in long positions.
At the middle of Friday's GMT trading hours, the sentiment was 65% long.
In the meantime, trader set up pending orders in the 100-pip range around the rate were 77% to buy the pair.