At the 107.00 level the rate found support in a 23.60% Fibonacci retracement level.
US ISM Manufacturing PMI
The Institute for Supply Management released the US ISM Manufacturing PMI survey data results, which came out worse-than-expected of 47.8 compared to the forecast of 50.4.
The Chair of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee Timothy R. Fiore commented: "Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019. Overall, sentiment this month remains cautious regarding near-term growth."
Economic Calendar
The week will end with the biggest event of the month in the US, the employment data publication, on Friday at 12:30 GMT. The release will consist of three data sets being published. The Unemployment Rate, Non-Farm Employment Change and the Average Hourly Earnings.
The Average Hourly Earnings is the top number to watch. It is closely followed in importance by the Non-Farm Employment change. Meanwhile, the Unemployment Rate can be ignored by financial traders.
The event has caused moves from 13.4 to 38.9 pips since May 2019.
All of the historical reaction data tables to all notable data releases have been published in a separate publication. To see the publication, click on the link below.
USD/JPY short-term daily review
On Thursday morning, the USD/JPY was consolidating by trading sideways between the 107.00 and 107.25 levels.In general, the rate was expected to continue to decline, as soon as the rate drops below the 107.00 level. In that case the next support the rate would find in the weekly S2 of the simple pivot points at 106.49.
Meanwhile, if the resistance of the 107.25 fails to stop another retracement up, the rate would next target the monthly pivot point at 107.44.
Hourly Chart
On the daily candle chart, the channel up pattern has been broken. The rate has clearly went away from it and the surge that was going one since late September is over.
Meanwhile, take into account that the 55-day simple moving average was also pierced, indicating that is not likely to impact the currency exchange rate in the near term future.
Daily chart
On Thursday, 57% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
Meanwhile, trader set up orders were almost neutral. Namely, in the 100-pip range 61% of pending orders were set to buy and 39% were to sell.
Previously, 54% of orders were to buy.