The USD/JPY decline found support in the psychological strength of the 106.00 round exchange level. This event resulted in a surge, which by the middle of the day had reached the 106.60 mark.
By the middle of Wednesday's European trading hours, the rate's decline had reached below the 106.20 mark.
Economic CalendarOn Friday, the week will end with the employment data release from the United States, on Friday at 12:30 GMT.
Next week, monthly US inflation and retail sales data sets are bound to cause notable reactions, as they have done in the past. Namely, US CPI on Tuesday, US PPI on Wednesday and US Retail Sales on Friday are being released at 12:30 GMT.
USD/JPY short-term daily review
On Wednesday, the USD/JPY currency pair broke the lower boundary of the falling wedge pattern. During today's morning, the pair resumed to trade within the given pattern.From a theoretical perspective, it is likely that the exchange rate could reach the upper pattern boundary near 106.80 and then a reversal south could follow.
However, note that the pair is pressured by the 100– and 200-hour SMAs in the 106.50/106.75 area, as well supported by the weekly S1 and the 55-hour SMA near 106.35. Thus, it is likely that the pair could consolidate in the short run.
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
Since Tuesday, trader open position volume on the Swiss Foreign Exchange was neutral.
On Wednesday, the sentiment was 51% short, and, on Thursday, 52% long.