By the middle of Thursday's US trading hours, the USD/JPY had reached the 105.50 level. As expected, the rate was pushed up by the 55- hour simple moving average.
Near term future forecasts were based upon whether or not the 105.50 mark provides psychological resistance.
Economic Calendar
The week will end with the US monthly employment data sets at 13:30 GMT. Namely, the US Average Hourly Earnings, Unemployment Rate and Non-farm Employment Change will be published. The USD/JPY has moved 10.4 to 26.3 pips since September.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term daily review
Future scenarios were based upon whether or not the 105.50 mark provides resistance.If the 105.50 provides resistance, the rate would most likely retrace back down to the support of the weekly R1 simple pivot point at 105.28 and afterwards the 55-hour simple moving average, which on Thursday was located at 105.10.
In the case of the 105.50 failing, the next target for the surge would be the weekly R2 simple pivot point that was located at 105.80. Above it, the 106.00 round exchange rate level could provide resistance.
Hourly Chart
On the daily candle chart, the USD/JPY is breaking one technical level after another. However, there is something important to note.
The 200-day simple moving average could slow down or even reverse the rate's surge. On Thursday, the SMA was located at the 105.60 mark.
Daily chart
On Tuesday, on the Swiss Foreign Exchange 56% of open position volume was in short positions.
On Wednesday, 59% of volume was short, and by the middle of Thursday they were 63% short.
Bulls have been taking profits, as new short positions are opened in expectations of a retracement back down.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 71% to sell. Previously, on Wednesday the orders were 61% to sell.