On Friday, the USD/JPY traded with high volatility, as it dropped below the 107.20 level and afterwards recovered to 107.80.
In regards to the near term future, the pair had passed the resistance of hourly SMAs and a weekly pivot point at 107.64.
Economic Calendar
Traditionally, the first week of the month is busy on the economic calendar.
On Monday, June 1, the Institute for Supply Management will release the US ISM Manufacturing PMI survey results at 14:00 GMT.
On Wednesday, June 3, two macroeconomic events from the US are expected: the ADP Non-Farm Employment Change at 12:15 GMT and the ISM Non-manufacturing PMI at 14:00 GMT.
The week will end with the US Employment data set release on Friday 12:30 GMT.
USD/JPY short-term daily review
At mid-day on Monday, the USD/JPY passed the resistance of the 55, 100 and 200-hour simple moving averages and the weekly pivot point at 107.64.
In theory, the rate should reach for the resistance of the 108.00 mark. However, the rate's surge could be stopped by the 107.90 level. This level stopped the pair's attempts to reach higher throughout the previous week.
Due to that resistance the pair could trade sideways between 107.65 and 107.90.
On the daily candle chart, the exchange rate remains under pressure of the 55-day moving average. In the meantime, note the resistance cluster made up of 100 and 200-day SMAs, which is located near the 108.30 level.
Daily chart
In theory, the rate should reach for the resistance of the 108.00 mark. However, the rate's surge could be stopped by the 107.90 level. This level stopped the pair's attempts to reach higher throughout the previous week.
Due to that resistance the pair could trade sideways between 107.65 and 107.90.
Hourly Chart
On the daily candle chart, the exchange rate remains under pressure of the 55-day moving average. In the meantime, note the resistance cluster made up of 100 and 200-day SMAs, which is located near the 108.30 level.
Daily chart
Read More: Technical Analysis
Traders remain short
On Friday, trader open position volume on the Swiss Foreign Exchange was 67% short.
By the middle of Monday's GMT trading hours, the sentiment was 64% short.