Since Thursday's noon, the USD/JPY has been recovering from the decline, which started on November 8.
By the middle of Friday's trading, the rate had broken the resistance of the 55-hour simple moving average at 108.70.
Next week, the rate is expected to be impacted by one event.
On Wednesday, the FOMC Meeting Minutes are set to be published at 19:00 GMT. Since April, the rate has moved from 7.7 to 15.3 pips in the five minutes following the release.
The week's reaction tables have been published. Take a look at the 18.11-22.11 Event Historical Reactions publication.
Read More: 18.11-22.11 Event Historical Reactions
USD/JPY short-term daily review
Yesterday, the USD/JPY currency pair tried to surpass the support level formed by the weekly S1 and the Fibo 38.20% at 108.44. During Friday morning, the pair was testing the resistance formed by the 55-hour SMA at 108.69.If the given resistance fails, it is likely that some upside potential could prevail in the market in the nearest future. In this case the exchange rate has to surpass the resistance formed by the 100– and 200-hour SMAs, as well the weekly PP located circa 108.90.
However, if the given resistance holds, it is likely that the US Dollar could trade sideways against the Japanese Yen within the following trading session. Also, it is unlikely that bears could prevail, and the rate could drop lower than the 108.20 mark.
Hourly Chart
On the daily candle chart, the rate has passed the support of the channel up pattern. It is a signal that the large scale surge of the USD/JPY is over.
In the meantime, the rate was expected to be influenced by the support of the 55 and 100-day SMAs at 108.00 and 107.70. Moreover, the resistance of the 200-day SMA was located near 109.00.
Daily chart
Read More: Technical Analysis
Traders short the USD/JPY
On Friday, 58% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, trader set up pending orders were neutral. Namely, in the 100-pip range 53% of pending orders were to sell and 47% were to buy.
Previously, the orders were 63% to buy.