Yesterday, the USD/JPY currency pair reversed from the upper boundary of the short-term ascending channel at 108.75.
During today's morning, the pair declined to the support level formed by the weekly PP at 108.22.
Bureau of Labor Statistics released the US Average Hourly Earnings data, which came out worse-than-expected of 0.2% compared with forecast 0.3%.
According the official release: "Total nonfarm payroll employment edged up in May (+75,000), and the unemployment rate remained at 3.6 percent, the U.S. Bureau of Labor Statistics reported today. Employment continued to trend up in professional and business services and in health care."
US data releases could impact USD/JPY pair
Today, the market is focused on the US CPI data release at 12:30 GMT. Note, that previous release caused a thirteen-pip move.
On Friday, June 14, the US Retail Sales data will be released at 12:30 GMT. Last time, the rate made a twelve-pip move.
USD/JPY short-term daily review
During the previous trading session, the USD/JPY currency pair reversed from the upper boundary of the short-term ascending channel at 108.75. During today's morning, the pair was testing the support level—the weekly PP at 108.22.If the given support level holds, it is expected, that the exchange rate could reverse north. However, note, that the rate hs to surpass the resistance cluster formed by the 55-, 100– and 200-hour SMAs, as well the Fibo 38.20% and the weekly R1 in the 108.36/108.61 range.
If the given support does not hold, it is likely, that a breakout south from the channel could occur soon. A possible downside target is the psychological level at the 108.00 mark.
Hourly Chart
On the daily candle chart, a large descending channel pattern can be observed.
Also, as apparent on the chart, the rate is trading sideways around the Fibonacci 38.20% retracement at 108.43. No significant changes are expected in the nearest future. .
Daily chart
On Wednesday, 73% of all positions on the Swiss Exchange Market were long.
Meanwhile, trader set up pending orders remained almost neutral, as 52% of pending commands in the 100-pip range were set to sell.