On Wednesday, the US Dollar declined by 50 pips or 0.45% against the Japanese Yen. A breakout occurred through the lower boundary of an ascending channel pattern during yesterday's trading session.
Economic Calendar
On Thursday, at 12:30 GMT, the US Producer Price Index is set to reveal more information about inflation in the United States.
USD/JPY short-term review
However, the 100– hour simple moving average at 110.32 could provide support for the currency exchange rate in the shorter term.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, a breakout through the upper boundary of a descending channel pattern has occurred.Given that a breakout has occurred, bullish traders are likely to continue to pressure the price higher during the coming days.
However, the USD/JPY currency exchange rate could encounter resistance at 110.60 within the following trading sessions.
Daily chart
Read More: Technical Analysis
Traders are bearish on USD/JPY
On Wednesday, traders on the Swiss Foreign Exchange were 73% short on USD/JPY.
On Thursday, the sentiment was 70% short.
Meanwhile, on Monday, traders set up pending orders in the 100-pip range around the rate was 57% to buy.