Economic Calendar
On Wednesday, the rate is bound to move due to the release of the Federal Open Market Committee Meeting Minutes at 18:00 GMT.
On Thursday, the US quarterly Preliminary GDP data at 12:30 GMT is set to confirm or deny whether the United States have entered a recession. A recession is defined by two consecutive quarters of decline in the Gross Domestic Product.
Hourly Chart
In the case that the pair reaches below the 127.00 mark, the weekly S1 simple pivot point at 126.60 might act as support. Further below, the 126.50 and 126.00 could act as support levels.
Meanwhile, a potential recovery of the USD against the Japanese Yen would face resistance in the 50-hour SMA near 127.75, the 100-hour SMA near 127.90 and the 128.00 mark, before reaching the high level zone at 128.20/128.30 and the weekly simple pivot point at 128.19.
USD/JPY daily chart's review
On the daily candle chart, the pair has clearly broken the channel up pattern, which guided the rate's surge from the low level of March 30.On May 16, Dukascopy Analytics marked the April and May high level zone as resistance and late April and recent May low levels as support. Namely, resistance is located at 131.20/131.40 and support is at 126.90/127.55.
Most recently, the rate's support zone was being approached by the additional technical support of the 50-day simple moving average.
Daily chart
On Monday, on the Swiss Foreign Exchange, traders were 63% short as that amount of open position volume was in short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 66% to sell the USD against the JPY.
On Tuesday, open positions were 64% short and pending orders were 60% to sell.