The USD/JPY started a decline, as it was about to face the resistance of the 108.00 level and the 200-hour simple moving average.
By the middle of Tuesday's GMT trading hours, the pair had been pushed through the support of the 55 and 100-hour SMAs and the weekly pivot point. In addition, the channel up pattern was broken.
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
By the middle of Tuesday's GMT trading hours, the USD/JPY had no technical support as low as the cluster of technical levels near 106.85. The cluster is made up of the monthly pivot point, weekly S1 pivot point and a 38.20% Fibonacci retracement level.However, the pair's decline could be stopped by the 107.20 on 107.00 levels. The round price levels provided support throughout last week.
Hourly Chart
On the daily candle chart, the rate faces the resistance of the daily simple moving averages. The SMAs were located from 108.30 to 108.84 levels.
Daily chart
Read More: Technical Analysis
Traders are short on USD/JPY
On Tuesday, 59% of trader open position volume on the Swiss Foreign Exchange was in short positions.
During Monday's trading, the sentiment was 58% short.