However, in a couple of hours the markets realized that the additional hikes by the Bank of England would result in a deeper UK economic decline in the further future. Namely, the International Monetary Fund made comments and explained how reckless the UK central bank and government were. Due to that reason, the situation, asset prices and currency exchange rates retraced back to Tuesday's levels.
In general, the USD/JPY is still standing below the 144.70/145.00 zone and the situation remains unchanged since the recovery, which followed the Bank of Japan intervention in the forex market on 22.09.2022.
Economic Calendar
On Friday, at 12:30 GMT the Core Personal Consumption Expenditure Price Index is bound to make an impact, as the head of the Federal Reserve Jerome Powell revealed last week that he is watching this index as a measure for inflation not the Consumer Price Index.
Hourly Chart
A move above the 145.00 level might result in the rate finding resistance in the 145.50 and 145.75 levels. However, it is currently unclear at which point would the Bank of Japan once again intervene and beat the rate down, or would the policymakers allow the Yen to depreciate.
On the other hand, a bounce off from the resistance zone is expected to look for support in the 50-hour simple moving average and the 144.00 level. In addition, note the approaching 100 and 200-hour simple moving averages.
USD/JPY daily chart's review
On the daily candle chart, the pair pierced the 145.00 mark and was heading to 1998 levels, before the BoJ intervened. It appears that the 145.00 level is where the central bank draws its line and starts to beat the rate down.Daily chart
On Wednesday, on the Swiss Foreign Exchange, traders were 74% 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 51% to buy the USD against the JPY.
On Thursday, the positions were 70% short and orders were 57% to buy.