During Wednesday morning hours, the USD/JPY currency pair dropped below 107.00.
It is likely that the pair could gain support from the Fibo 38.20% at 106.86 and reverse north in the short run.
Economic Calendar
On Thursday, the publication of the US Retail Sales and Unemployment Claims at 12:30 GMT.
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USD/JPY short-term daily review
On Tuesday, the USD/JPY currency pair consolidated near 107.30. During today's morning, the pair dropped to 107.00.It is likely that the exchange rate could gain support from the Fibo 38.20% at 106.86 and reverse north in the short term.
Meanwhile, note that the rate would have to surpass the resistance range formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 107.12/107.30 area.
If the given support does not hold, it is likely that the currency pair could target the psychological level at 106.60.
Hourly Chart
On the daily candle chart, the rate trades below the additional resistance of the 55- and 100-day simple moving averages that are located in the 107.50 area.
Daily chart
Read More: Technical Analysis
Long sentiment increases
On Wednesday, on the Swiss Foreign Exchange 54% of open position volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 54% of orders were to buy.