Since the middle of Wednesday's GMT trading hours, the USD/JPY has continued to trade near the 107.50 mark.
However, on Friday, the rate decreased volatility, which signalled that the pair could soon make a sharp move.
US Unemployment data
The Bureau of Labor Statistics released the US ADP Unemployment Rate data, which came out better-than-expected of 11.1% compared with the forecast of 12.4%.Initial Reaction
Economic Calendar
During the week, notable macroeconomic data releases are set to start on Monday at 14:00 GMT. The US ISM Non-Manufacturing PMI is scheduled to be released.
On Thursday, at 12:30 GMT the weekly US Unemployment Claims are set to be released. They could create above average volatility.
On Friday, the US Producer Price Index and US Core Producer Price Index are set to be released. In the recent past they have not caused notable volatility.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
Given that the exchange rate is pressured by the 55-hour moving average near 107.50, it is likely that some downside potential could prevail in the market. In this case the rate could target the support formed by the Fibo 38.20% and the weekly PP at 106.90.Meanwhile, note that the currency pair could gain support from the 200-hour moving average near 107.30. Thus, it is likely that the US Dollar could consolidate against the Japanese Yen in a wider range.
Hourly Chart
On the daily candle chart, the rate has the additional support of the 55-day simple moving average at 107.40.
Daily chart
Read More: Technical Analysis
Traders remain short
Since Thursday, on the Swiss Foreign Exchange 56% of open position volume was in short positions
Meanwhile, 51% of set up pending trade orders in a 100-pip range around the exchange rate were to buy.
The orders were 59% to sell on Thursday.