The surge of the USD/JPY has reached the 109.40 level. Moreover, the pivot point at 109.39 was pierced on Thursday.
In regards to the near term future, the rate was expected to consolidate and afterwards resume its surge.
Next week's reaction tables have been published. Take a look at the 11.11-15.11 Event Historical Reactions publication.
Read More: 11.11-15.11 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tried to surpass the resistance level formed by the monthly R1 at 109.39. During Friday morning, the pair was trading near the given resistance.It is likely that some upside potential could prevail in the market, as the exchange rate is supported by the 55-hour moving average at 109.08. In this case the rate would have to surpass the Fibonacci 50.00% retracement at 109.58.
On the other hand, the US Dollar could trade sideways against the Japanese Yen within the following trading session. Also, it is unlikely that bears could prevail, and the pair could drop lower than the Fibonacci 38.20% retracement at 108.44.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 200-day simple moving average. The SMA on Wednesday began to provide technical support. Previously, the SMA kept the rate down throughout October.
Daily chart
Read More: Technical Analysis
Traders go short
On Friday, on the Swiss Foreign Exchange USD/JPY open position volume was bearish. 54% of open volume was short and 46% was long.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 62% of pending orders were to sell and 38% were to buy.