On Thursday, the US Dollar declined by 62 pips or 0.56% against the Japanese Yen. The decline was stopped by the 100– hour simple moving average at 109.58 during yesterday's trading session.
Economic Calendar
USD/JPY short-term review
Currently, the exchange rate is trading near the lower boundary of an ascending channel pattern and could be set for a breakout.If the breakout occurs, a decline towards the weekly S1 at 109.19 could be expected today.
However, if the channel pattern holds, buyers could drive the currency exchange rate higher within this session.
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
Read More: Technical Analysis
Traders are short
On Thursday, traders on the Swiss Foreign Exchange were 64% short on USD/JPY.
On Friday, the sentiment was 65% bearish.
Meanwhile, traders set up pending orders in the 100-pip range around the rate was 54% to sell.