On Thursday morning, the rate found support in the 200-hour SMA just below the 107.40 mark.
In general, the rate was set to surge, as it was being approached by the technical support of the 55 and 100-hour simple moving averages.
Economic Calendar
On Thursday, the US CPI will be released at 12:30 GMT. The event has caused moves from 12.1 to 28.4 pips since May.
Meanwhile, notable event overview and historical data tables have been published. Click on the link below to see the article with the data.
Read More: 07.10-13.10 Event Historical Reactions
USD/JPY short-term daily review
During Thursday's London trading morning hours, the USD/JPY was located above the support of the 200-hour SMA, which was located just below the 107.40 level.In general, the rate was expected to surge, as it could be pushed up by the 55 and 100-hour simple moving averages. During the morning, the SMAs were located at 107.27 and 107.13.
Meanwhile, take into account that US-China trade talks are impacting the value of the USD from a fundamental aspect, which breaks technical indicators.
Hourly Chart
On the daily candle chart, the low level of October 3 has provided with a reference point for drawing simple trend patterns. On Thursday, Dukascopy Analytics added an ascending channel pattern. This pattern could guide the rate higher until the end of the year.
Meanwhile, note that Wednesday's high volatility occurred between the 55 and 100-day simple moving averages. However, the resistance of the 100-day SMA at 107.59 was pierced on Thursday.
Daily chart
Read More: Technical Analysis
Swiss traders remain long on USD/JPY
On Wednesday, 66% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
On Thursday, 63% of volume was long.
Meanwhile, trader set up orders were neutral. Namely, in the 100-pip range 50% of pending orders were to buy and 50% were to sell.