On Tuesday, the USD/JPY jumped, as it almost reached the 108.50 mark. The surge was expected on Monday, when the rate broke the resistance of three SMAs and a pivot point.
In theory, the rate should consolidate its gains by trading between the 50.00% Fibo at 108.35 and the pivot point at 108.51.
Economic Calendar
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
On Tuesday, the rate jumped to almost reach the 108.50 mark.
In regards to the near term future, the rate was expected to trade sideways to consolidate its gains. That is assumed due to rate surging a lot sharper than its normal volatility.
Hourly Chart
On the daily candle chart, the pair has pierced the resistance of the 100 and 200-day simple moving averages at the 108.30 level.
Daily chart
Short sentiment decline continues
On Friday, trader open position volume on the Swiss Foreign Exchange was 67% short. On Monday, the sentiment was 64% short
By the middle of Tuesday's GMT trading hours, the sentiment was 57% short.
As the rate surged, traders closed their short positions.