After reaching the 107.50 mark on Wednesday, the USD/JPY currency exchange rate began to trade sideways. By the middle of Thursday's trading, the rate had continued to bounce around 107.50.
In the near term future, the pair was expected to get squeezed in between hourly simple moving averages.
Economic Calendar
The main scheduled macroeconomic data release of the week is bound to occur on Thursday, at 12:30 GMT. At that time the US employment data sets are scheduled to be published.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
It is likely that the exchange rate could be pushed down by the 55-hour moving average near 107.60. In this case the rate could decline to the support level formed by the weekly PP and the Fibo 38.20% at 106.90.Meanwhile, note that the currency pair could gain support from the 200-hour moving average near 107.20. Thus, it is likely that the pair could consolidate in the short term.
Hourly Chart
On the daily candle chart, the rate has the additional support of the 55-day simple moving average at 107.40.
Daily chart
Read More: Technical Analysis
Short sentiment increases
On Thursday, on the Swiss Foreign Exchange 56% of open position volume was in short positions.
Previously, on Wednesday, traders went short from being long, as 54% of volume was in short positions.
Meanwhile, 59% of set up pending trade orders in a 100-pip range around the exchange rate were set to sell.
The orders were 63% to buy on Wednesday.