Not only did the rate reached the targeted 105.00 level on Wednesday, the pair broke the support of the technical levels at this mark.
By the middle of Thursday's GMT trading hours, the pair had reached below the 104.80 level and had no close by technical support levels.
Economic Calendar
On Thursday, at 12:30 GMT, the US weekly Unemployment Claims could cause a move. However, despite all pairs moving during the publication, the USD/JPY has remained almost flat.
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USD/JPY short-term daily review
On Thursday morning, the rate passed the support of the 105.00 level for the second time. Moreover, it had retraced back up and removed some of the oversold pressure that impacts the pair.In the near term future, the rate was expected to decline, as it had no support as low as the 104.08 level, where a monthly pivot point was located at. However, take into account that round exchange rate levels are expected to continue to provide support.
On the other hand, the rate still has above it the hourly simple moving averages. This fact indicates that the pair is still oversold. Due to that reason a short lived retracement back up to the 105.00 level or sideways trading are possible.
Hourly Chart
On the daily candle chart, the pair has passed the August low level of 105.10. Next low level, which could provide support was the July low level of 104.20.
Daily chart
On Thursday, traders of the Swiss Foreign Exchange were neutral, as 52% of all open position volume was in short positions.
Previously, the sentiment was 58% short.
Meanwhile, trader set up pending orders in the 100-pip range were 71% to buy. The orders had declined from 79% to buy.
It can be deducted that the short positions were closed, as trader take profits were hit.
In the meantime, traders have set up buy to open long position orders that would be executed in the case of a reversal of the rate, which should occur due to the fact that the rate is oversold.