On Thursday morning, the USD/JPY tested the upper boundary of the falling wedge pattern.
From a theoretical point of view, it is likely that a reversal south could occur in the nearest future.
Economic CalendarThis week there are no events left that could affect the USD/JPY pair.
Next week, data releases from the US will be on focus.
On Tuesday, October 29, the US CB Consumer Confidence data will be released at 14:00 GMT.
On Wednesday, October 30, the US ADP Non-Farm Employment Change data will be published at 12:30 GMT.
Also, at the same day, the US Advance GDP will be published at 12:30 GMT.
Moreover, the FOMC Statement and the Federal Funds Rate data will be published at 18:00 GMT.
On Thursday, October 31, the Japanese Monetary Policy Statement and the BOJ Outlook Report will be released at 03:00 GMT.
At the same day, the US Personal Spending data will be released at 12:30 GMT.
Also, the US Employment data set will be on focus - the Average Hourly Earnings, the Non-Farm Employment Change and the Unemployment Rate data will be published at 12:30 GMT.
At the same day, the US ISM Manufacturing PMI survey results will be published at 14:00 GMT.
Read More: 14.10-18.10 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair consolidated at the 108.65 level. During Friday morning, the pair continued to trade at the given level.Note that the exchange rate is supported by the 55-, 100– and 200-hour moving averages, currently located circa 208.60. Therefore, it is likely that some upside potential could prevail in the market.
However, note that the rate has been testing the upper boundary of the falling wedge pattern since Wednesday. Thus, from a theoretical point of view, a reversal south could occur. In this case the pair could gain support of the weekly PP and the Fibo 38.20% at 108.44.
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 go short
On Friday, 66% 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 61% of pending orders were to sell and 39% were to buy.