It resulted in the USD/JPY dropping to the 154.50/154.80 zone. The zone acted as support, before forcing the pair to retrace back up to levels near 155.50.
Economic Calendar
Notable events for this week are over. The CPI has set the tone for a USD decline.
USD/JPY hourly chart analysis
A resumption of the prior surge would face resistance at 156.00/156.30. Take into account that this range is strengthened by the 50 and 100-hour simple moving averages. Higher above, the 156.50 level is set to act as resistance.On the other hand, a decline of the pair could look for support in the mentioned 154.50/154.80 zone. Further below, note the 154.00 mark and the weekly S1 simple pivot point at 153.70.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the rate has ended the long steak of gains that started when the pair hit the combination of the 152.00 level that marks the 2022 high level and the 50-day simple moving average. It could be that a consolidation takes place until the moving average provides support.Daily chart
Read More: Technical Analysis
Traders add long positions
On Monday, traders were long, as 57% of volume was in bullish positions.
Meanwhile, pending orders around the current rate were 66% to buy.
On Wednesday, traders were 62% short, as the dip had encouraged traders to open more long positions. In addition, pending orders were 92% to buy the USD versus the Yen.