On Thursday morning, the USD/JPY tried to surpass the psychological level at 108.70 .
Given that the pair is supported by the 55-, 100- and 200-hour SMAs, some upside potential could prevail in the market.
Economic CalendarThis week there is only one event that could affect the USD/JPY pair.
Today, the US Durable Goods Orders data will be published at 12:30 GMT.
Read More: 14.10-18.10 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair reached the psychological level at 108.70. During Thursday morning, the pair was testing the given level.Note that the exchange rate is supported by the 55-, 100– and 200-hour moving averages, it is likely that some upside potential could prevail in the market. A possible upside target is the weekly R1 at 108.91.
However, if the given psychological level holds, it is likely that the US Dollar could trade sideways against the Japanese Yen within the following trading session
Hourly Chart
On the daily candle chart, the low level of October 3 has provided with a reference point for drawing simple trend patterns. Dukascopy Analytics added an ascending channel pattern. This pattern could guide the rate higher until the end of the year.
Meanwhile, the rate surpassed the 38.20% Fibonacci retracement level at 108.43 and is testing the 200-day moving average.
Daily chart
Read More: Technical Analysis
Swiss traders are neutral
On Thursday, 50% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 67% of pending orders were to sell and 33% were to buy.