Despite the USD/JPY piercing the trend line of the 2021 high levels, the rate returned to trade below it on Tuesday. During the day's afternoon hours, the pair bounced off the trend line and passed four technical support levels.
In regards to the near term future, the rate was expected to continue to decline a slow as 103.50.
Economic Calendar
On Wednesday, January 27, the Federal Reserve is going to unveil its monetary policy plans by publishing the FOMC Statement at 19:00 GMT.
On Thursday, January 28, the US Advance GDP data is set to be released at 13:30 GMT. Also, the US Unemployment Claims data will be published at the same time.
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
The decline of the USD/JPY was expected to test the support of the 103.50 mark, which provided the rate with support on January 22.In the case of this level failing to provide support, the currency exchange rate would look for support in the weekly S1 simple pivot point at 103.42. If this technical level does not hold, the rate could look for support in the trend line, which connects the January 08, 13 and 21 low levels near 103.20.
On the other hand, if the 103.50 mark and the weekly S1 hold, the rate could retrace back up to the 55, 100 and 200-hour simple moving averages in the 103.65/103.75 zone.
Hourly Chart
On the daily candle chart, the rate is under pressure of the 55-day moving average near 104.00
Therefore, we can assume that the rate could decline in the medium term. Note that the rate could gain support at the 103.00 area.
Daily chart
Since Friday, on the Swiss Foreign Exchange around 57% of volume was in long positions.
On Tuesday, the sentiment changed, as 60% of volume was long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 58% to buy.