Since the start of Wednesday's trading session, the USD/JPY has made two attempts to pass the resistance of the 108.00 level. By mid-day on Friday, the rate was about to do another attempt, as it had found support in the 55 and 100-hour simple moving averages.
In regards to the future, the rate was expected to get squeezed in between the two SMAs and the 108.00 level, which is strengthened by two technical levels.
Economic CalendarOn Thursday, at 12:30 GMT, the US Unemployment Claims are scheduled to be released. Most likely, the event would reveal another major decline in US employment.
Also on Thursday, at 13:45 US Manufacturing PMI could cause a move, as in February and March it created large moves.
Last but not least, a notable reaction of above then pips could be created by the US Durable Goods orders on Friday at 12:30 GMT.
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tried to surpass the weekly S1 at 108.03. During Friday morning, the pair was trading at 107.80.On the one hand, the exchange rate could gain support from the 55– and 100-hour SMAs near 107.60. Note that the rate would have to surpass the 200-hour SMA and the Fibo 50.00% in the 108.10/108.35 range.
However, if the weekly S1 holds, it is likely that the US Dollar could continue to trade upwards against the Japanese Yen in the short run.
Hourly Chart
On the daily candle chart, the rate keeps bouncing off the resistance of the 55, 100 and 200-day simple moving averages, which are located from 108.30 to 109.90.
Daily chart
Read More: Technical Analysis
Short sentiment continues to decline
On Friday, 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
During Thursday's trading, the sentiment had become 55% short.