Note that the pair is trading near the upper boundary of the short-term descending channel. Thus, from a theoretical point of view, it is likely that bears could prevail in the market.
Economic Calendar
On Thursday, the US Final GDP will be published at 12:30 GMT. This event has caused moves on the USD/JPY from 6.3 to 10.5 pips since June 2018.
The week will end with the US Durable Goods Orders data release at 12:30 GMT. The event will consist of the release of US Durable Goods Orders and US Core Durable Goods Orders.
This event has caused almost insignificant moves since April, as the USD/JPY moved from 7.2 to 11.7 pips. Due to that it is concluded that this event that is tagged as high impact on economic calendars, is not notable enough to be watched.
USD/JPY short-term daily review
On Tuesday, the USD/JPY currency pair re-tested the lower boundary of the short-term descending channel at 107.00. During today's morning, the pair was trading near 107.40.Note that the exchange rate is pressured by the 55– and 100-hour SMAs, currently located at 107.45 and 107.65 respectively. Therefore, it is likely, that bears could prevail in the market in the short term. A possible downside target is the Fibo 23.60% at 107.02.
However, the currency pair could gain support of the weekly S1 at 107.21. If the given level holds, the possible decline might not be immediate. It is unlikely that the given channel does not hold, and the pair could exceed 107.85 due to the resistance formed by the 200-hour SMA and the weekly PP.
Hourly Chart
On the daily candle chart, the pair is located between the resistance of the 100-day simple moving average at 107.90 and the support of the 55-day SMA at 107.20.
In addition, the 55-day SMA was strengthening the support of the weekly S1.
Daily chart
Read More: Technical Analysis
Sentiment remains unchanged
On Wednesday morning, the open USD/JPY position volume on the Swiss Foreign Exchange was 55% long.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 59% of pending orders were set to sell and 41% were to buy.