The USD/JPY currency exchange rate has been finding support in a 50.00% Fibonacci retracement level at 108.35.
In addition, note that a channel down pattern was spotted. Most USD rates have been guided by a channel pattern throughout the week. In the case of the USD/JPY the pattern is capturing a decline of the rate.
Economic Calendar
The notable data releases for this pair this week are over. Next week's events are set to be described in the Friday's publication.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
In regards to the near term future, the rate is likely going to trade between the upper trend line of the pattern and the support of the 50.00% Fibonacci retracement level at 108.35.However, if the resistance line of the pattern fails, the rate could test the 109.00 mark and afterwards the weekly R1 at 109.23. On the other hand, the 50.00% Fibo could fail at providing support. In this case the rate might reach for the 108.00 level and the lower trend line of the channel pattern.
Hourly Chart
On the daily candle chart, the rate could eventually reach the 61.80% Fibonacci retracement level at the 109.83 level. This retracement level stopped the rate's early June's sharp recovery and forced the USD/JPY into continuing its large scale decline.
Daily chart
On Wednesday, traders were 71% short on USD/JPY. The Swiss Foreign Exchange open positions have been mostly short for two weeks.
On Thursday, 73% were short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 56% to buy.