The resistance of the 38.20% Fibo at 106.86 held. In the aftermath of the bounce off from the resistance level, a decline began.
By the middle of Wednesday's European trading hours, the rate's decline had reached below the 106.20 mark.
Economic CalendarUSD/JPY short-term daily review
Given that the exchange rate is pressured by the 55– and 100-hour SMAs near 106.70, it is likely that some downside potential could prevail in the market. Note that the rate could gain support from the lower boundary of a falling wedge pattern in the 106.10 area.Hourly Chart
On Tuesday, 52% of trader open position volume on the Swiss Foreign Exchange was in short positions. On Wednesday, the sentiment was 51% short.
The sentiment had become neutral. During the previous week, traders were mostly short.