Downside risks dominated the USD/JPY currency pair lower during Friday's trading session. As a result, the US Dollar fell by 91 pips or 0.83% against the Japanese Yen on Friday.
Economic Calendar
On Tuesday, at 12:30 GMT, the US Core Retail Sales and US Retail Sales are expected to be released. The Retail Sales have caused moves from 9.4 to 19.3 pips since January. The RS has moved the EUR/USD from 9.4 to 19.4 pips during this year.
On Wednesday, the top event of the week would occur. At 18:00 GMT, the US FOMC Meeting Minutes could cause a move from 10.8 to 54.3, as it had done since November 2020.
On Thursday, the US Unemployment Claims could cause a move from 5.9 to 28.8 pips.
USD/JPY short-term review
Currently, the exchange rate is trading near the lower line of a descending channel pattern and could be set for a breakout.If the breakout occurs, bears could target the 109.00 level within the following trading session.
However, if the channel pattern holds, a surge towards the 109.80 area could be expected today.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the currency exchange rate fails to break the resistance level near the upper line of a descending channel pattern at 110.50.In the case of the channel holding, the USD/JPY pair could continue to trend downward during the following trading sessions.
Daily chart
On Friday, traders on the Swiss Foreign Exchange were 69% short on USD/JPY.
On Monday, the sentiment was 63% short.
Meanwhile, traders set up pending orders in the 100-pip range around the rate was 70% to buy.