On Wednesday, the USD/JPY was testing the combined resistance of three hourly simple moving averages and a weekly pivot point.
In theory, the rate could pass these resistance levels, as all of them failed to provide support to stop the decline of Tuesday.
Economic Calendar
There are only couple data releases expected, which could move the USD/JPY pair.
On Thursday, the US Unemployment Claims data is set to be published at 12:30 GMT.
On Friday, the US Manufacturing and Services PMIs survey results are going to be released at 13:45 GMT.
Take a look at all of the historical reaction tables by clicking on the link below.
USD/JPY short-term daily review
From a theoretical point of view, it is likely that some upside potential could prevail in the market, and the exchange rate could target the weekly R1 at 107.43.Meanwhile, note that the currency pair is pressured by the 55-, 100– and 200-hour SMAs near 107.10. Also, the pair could gain support from the Fibo 38.20% at 106.86. Thus, it is likely that the rate could consolidate.
Hourly Chart
On the daily candle chart, the rate has failed to pass the resistance of the 55 and 100-day SMAs. Previously, the rate was making attempt to pass the lone resistance of the 55-day SMA since July 9.
Daily chart
On Tuesday, on the Swiss Foreign Exchange 54% of open position volume was in long positions.
By the middle of Wednesday's trading hours, the sentiment was 58% short.
Meanwhile, trader set up pending orders in the 100-pip range were bearish, as 54% of orders were to sell.