On Wednesday, the USD/JPY was being supported by the 55-hour simple moving average, which was pushing the rate up.
It was expected that the rate would most likely reach new high levels.
Economic Calendar
On Wednesday, the US ADP Non-Farm Employment Change at 13:15 GMT will be on the headlines. However, the market does not care, as since December 2 the rate has moved only 3.9 to 13.3 pips on the release.
On the same day, at 15:00 GMT the US ISM Non-Manufacturing PMI could cause a move from 3.0 to 16.0 pips.
On Friday, at 13:30 GMT the US will publish its monthly employment data. The release will consist of the Average Hourly Earnings, Non-farm Employment Change and Unemployment Rate. The USD/JPY has moved from 10.4 to 25.9 pips on the publication since October.
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
Instead of reaching new high levels or trading sideways, the USD/JPY retraced back down to the support of the 55-hour simple moving average. On Wednesday, the SMA had pushed the rate back to the 106.90 level, which provided resistance on Tuesday.If the rate manages to pass the 106.90 mark, it could immediately find resistance in 107.00. In the case of the 107.00 level not providing resistance, the pair should reach for the weekly R1 simple pivot point at 107.25.
On the other hand, if the 106.90 level provides resistance, the rate would first look for support in the 55-hour SMA at 106.77 and afterwards the 100-hour SMA near 106.55.
Hourly Chart
On the daily candle chart, the channel up pattern, which captures the 2021 surge, has remained intact. The lower trend line supported the 105.00 mark, from which the rate bounced off last week.
The rate has been reaching new higher high levels for seven consecutive trading sessions.
Daily chart
On Wednesday, traders were 73% short on USD/JPY. The Swiss Foreign Exchange open positions have been mostly short since Friday.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to sell.