At mid-day during Tuesday's London trading hours, the USD/JPY plummeted, as it bounced off resistance levels near 104.10 and passed the support of the 104.00 mark.
In regards to the near term future, the rate was expected to first test the weekly S1 simple pivot point at 103.75 and afterwards the Monday's low level of 103.50.
Economic Calendar
On Wednesday, the US Retail Sales and US Core Retail Sales could cause a move on the chart at 13:30 GMT. The rate has moved 5.3 to 11.2 pips on the announcements.
Moreover, on that day the US Flash Manufacturing and Services Producers Managers Indices or PMIs are set to be published at 14:45 GMT. The USD/JPY has moved from 3.0 to 28.6 pips on this publication.
The day would end with the top event of the whole calendar. The US Federal Reserve is set to publish their Federal Funds Rate and FOMC Statement at 19:00 GMT. However, this is one of the three times when the FOMC Economic Projections are published. During the publication of the projections the USD/JPY has moved 28.7 pips in June and 26.6 in September.
On Thursday, at 13:30 GMT the US Unemployment Claims could create a move of 4.8 to 8.7 pips. Dukascopy Analytics mostly ignore this event, as it does not create notable short term volatility increases. However, due to it being popular on financial media, a comments and the numbers are provided.
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
Note that the rate could gain support from the weekly S1 simple pivot point at 103.76. If the given support level holds, a reversal north could follow. Otherwise, the currency pair could go below the psychological level at 103.50.Hourly Chart
On the daily candle chart, the rate pierced the support zone, which kept the pair down since November 18. It indicates that the pair could reach for the November low level of 103.20.
Daily chart
Since Friday, on the Swiss Foreign Exchange 71% of volume was in long positions.
On Tuesday, the sentiment was 68% long, as some had closed their long positions and/or opened short positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to buy the pair.