Meanwhile, note that it could be observed that the rate is being supported by the psychological support of the 105.80 level.
No data for USD/JPY this week
During this week there will be no more macroeconomic data releases that might impact the USD/JPY.
USD/JPY short-term daily review
The currency rate has three short term scenarios possible.In the case of breaking the resistance of the 55 and 100-hour simple moving averages at 106.05 and 106.13, the rate would surge up to the pivot point at 106.54.
If the pair passes the support of the 105.80 level, it would decline down to the pivot point and lower trend line of dominant pattern at 105.60.
Third scenario is a continuation of the trading between the simple moving averages and the 105.80 level.
Hourly Chart
On the daily candle chart, the rate has bounced off in a sharp move off the upper trend lines of dominant patterns. The move was expected to occur a lot slower.
Moreover, the move broke the junior pattern without pausing at its lower trend line.
In general, the rate is expected to trade sideways in the borders of the large scale descending pattern.
Daily chart
Read More: Technical Analysis
Traders remain long
Since the middle of Wednesday's trading session, 75% of USD/JPY open position volume on the Swiss Foreign Exchange was in long positions.
The sentiment declined by Friday, as 71% of open position volume was in long positions.
Meanwhile, trader set up pending orders were bullish, as in the 100-pip range 62% of pending orders were set to buy and 38% were to sell.
Previously, the rate was 54% bearish.