By the middle of Wednesday's London trading hours, the USD/JPY reached the resistance of the 200-hour simple moving average at 108.82.
However, take into account that before the rate recovered to this level it dropped down to the support of a monthly pivot point at 107.65. With it, a new low level was booked.
The drop was caused by the run to safety triggered by Iran firing rockets at US bases in Iraq.
However, the last release caused a move on the EUR/USD above ten pips. It is the criteria whether to take or not take into account a data release.
The week will end with the three US employment data sets being published at 13:30 GMT. Since August 2019, the USD/JPY has moved from 26.7 to 49.8 pips on the release.
The week's scheduled event historical data tables have been published. Click on the link below to read the article.
Read More: 06.01-10.01 Event Historical Reactions
USD/JPY short-term daily review
At mid-day on Wednesday, the USD/JPY traded just below the 200-hour simple moving average, which was located above the 108.70 level.If the SMA manages to reverse the rate's direction, it could reach for the support of the weekly PP at 108.50 and the 38.20% Fibonacci retracement level at 108.44.
On the other hand, if the SMA fails to provide resistance, the rate could aim for the monthly pivot point at the 108.95 level.
Hourly Chart
In general, ignore the technical of the daily candle chart. The situation and developments in the US-Iran situation are dictating the larger moves of the rate. Any new information in that regard can cause risk on sentiment or a run to safety.
Daily chart
Read More: Technical Analysis
Traders remain short
On Wednesday, 53% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Since Monday, trader set up pending orders were majorly bearish.
On Wednesday, in the 100-pip range 78% of pending orders were to sell and 22% were to buy.