On Friday, the USD/JPY currency exchange rate traded between the resistance of the 100-hour SMA near 106.45 and the support of the 55-hour SMA and weekly simple S1 pivot point at 106.32.
In theory, the rate should get squeezed in between these levels and afterwards break out either up or down.
Economic Calendar
On 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
Yesterday, the USD/JPY currency pair failed to surpass the 100-hour SMA near 106.50. During today's morning, the pair was trading at 106.40.
Note that the exchange rate remains under pressure of the 200-hour SMA near 106.60. Thus, some downside potential could prevail in the market, and the rate could target the lower line of the falling wedge pattern in the 106.00 area.
On the other hand, it is likely that the currency pair could gain support from the 55-hour SMA and the weekly S1 near 106.30 and re-test the upper pattern line located in the 106.70 area.
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.
Read More: Technical Analysis
Traders are neutral on USD/JPY
Since Thursday, trader open position volume on the Swiss Foreign Exchange had been 52% long.
Traders had been almost neutral since Tuesday.