On Wednesday, the USD/JPY rate broke resistance levels near 109.60 and reached the 109.80 level.
During the middle of the day's GMT trading hours, it was expected that the rate would test technical resistance levels that were located above 109.90.
US employment data sets are scheduled to be published on Friday at 13:30 GMT. Moves from 19.5 to 49.8 pips have been caused by this event since September 2019.
The week's event historical data tables have been published. Click on the headline below to read the article.
Read More: 03.02.-07.02 Event Historical Reactions
USD/JPY short-term daily review
On Wednesday, the pair was set to reach the resistance of the monthly R1 at 109.91 and the weekly R3 at 109.96.If these levels provide resistance, the rate could trade sideways between the 109.60 and 109.90 levels.
Meanwhile, watch out for the breaking of the 109.60 or the 109.90 levels. If the 109.60 fails, the rate could decline to the 55-hour SMA near 109.20. On the other hand, if the 109.90 is passed, immediately, the 110.00 would provide resistance.
Hourly Chart
On the daily candle chart, the rate has passed the resistance of the 55-day simple moving average. This fact, combined with the 100 and 200-day SMAs being left below 109.00, signals that the rate is overbought.
Daily chart
Read More: Technical Analysis
Traders are short on USD/JPY
On Wednesday, 71% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
Meanwhile, in the 100-pip range 65% of pending orders were to sell and 35% were to buy.