The USD/JPY has sharply declined, as by the middle of Friday's GMT trading the currency exchange rate had reached the 106.20 level.
In the meantime, the pair was testing the support of the weekly S2 simple pivot point.
Economic Calendar
There are no more notable events scheduled for this week.
Next week, notable macroeconomic events are set to start with the biggest and most important of them all, the Federal Reserve is scheduled to make a Rate Statement and Rate Announcement on Wednesday, at 18:00 GMT.
On Thursday, pay attention to the US Advance GDP and the weekly US Unemployment Claims that should be published at 12:30 GMT.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
On Thursday, the USD/JPY currency pair breached short-term ascending channel south. During today's morning, the pair was testing the weekly S2 at 106.28.If the given support level holds, it is likely that a reversal north could occur. In this case the exchange rate could target the resistance area formed by the weekly S1 and the Fibo 38.20% in the 106.66/106.86 range.
On the other hand, it is likely that the US Dollar could trade sideways against the Japanese Yen in the nearest future, as the rate could continue to test the predetermined support level.
Hourly Chart
On the daily candle chart, the rate has failed to pass the resistance of the 55 and 100-day SMAs that are strengthening the weekly R1.
Previously, the rate was making attempts to pass the lone resistance of the 55-day SMA since July 9. The SMA has kept the rate down.
Daily chart
On Thursday, on the Swiss Foreign Exchange 57% of open position volume was in short positions.
By the middle of Friday's GMT trading hours the sentiment was 60% short.
Meanwhile, trader set up pending orders in the 100-pip range were 75% to buy.
The orders were previously 58% bearish.