The resistance of the 38.20% Fibo at 106.86 held. In the aftermath of the bounce off from the resistance level, a decline began.
By the middle of Wednesday's European trading hours, the rate's decline had reached below the 106.20 mark.
Economic CalendarThere are no notable events scheduled for Thursday that could affect the exchange rate.
On Friday, the week will end with the employment data release from the United States, on Friday at 12:30 GMT.
USD/JPY short-term daily review
Given that the exchange rate is pressured by the 55– and 100-hour SMAs near 106.70, it is likely that some downside potential could prevail in the market. Note that the rate could gain support from the lower boundary of a falling wedge pattern in the 106.10 area.If the given pattern holds, it is likely that a reversal north could follow. Otherwise, it is likely that the currency pair could decline to the monthly S1 located at the 105.90 mark.
Hourly Chart
On the daily candle chart, during the end of April and start of May trading, the currency exchange rate had passed the support of the April low levels at 107.00.
In the meantime, the April high levels can be connected to reveal a resistance trend line.
Daily chart
Read More: Technical Analysis
Traders are neutral on USD/JPY
On Tuesday, 52% of trader open position volume on the Swiss Foreign Exchange was in short positions. On Wednesday, the sentiment was 51% short.
The sentiment had become neutral. During the previous week, traders were mostly short.