In general, the rate was expected to surge up to the pivot point at 106.54, which will provide resistance.
No more data this week.
This week's data releases are over. Nothing that might impact the USD/JPY is scheduled to be published.
Next week, the US FOMC Meeting Minutes are set to be published at 18:00 GMT on Wednesday.
This publication has caused adjustments of the USD/JPY charts since January from 7.7 to 19.4 base points.
USD/JPY short-term daily review
On Friday morning the USD/JPY was located above a support cluster that was providing support from 105.87 to 106.09.In general, the currency pair was expected to surge up to the pivot point at 106.54 level. If this pivot point is broken, the rate will again test the resistance at 106.80.
Meanwhile, it is highly unlikely that the rate will decline below the described cluster of support levels.
Hourly Chart
On the daily candle chart, it can be observed that the surge of the currency exchange rate was stopped by a 23.60% Fibonacci retracement level at the 106.98 level.
Moreover, it appears that the large scale descending channel this week was only pierced and not broken.
Daily chart
Read More: Technical Analysis
Traders remain long
Since Wednesday, 73% of USD/JPY open position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Friday's London trading hours the sentiment had increased to being 74% short.
Meanwhile, trader set up orders were neutral. Namely, in the 100-pip range 52% of pending orders were set to buy and 48% were to sell.
Previously, trader set up pending orders were bullish, as 69% of pending orders were set to buy and 31% were to sell.