On Wednesday, the USD/JPY currency exchange rate passed the resistance of the 100 and 200-hour simple moving averages near 105.40 and the weekly simple pivot point at 105.54.
By the middle of the day, the rate had reached above the 105.84 level, from which it had bounced off on Monday.
Economic Calendar
This week, only the US Preliminary GDP release on Thursday at 13:30 GMT could cause a notable sudden move.
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
It is unlikely that some downside potential could prevail in the market due to the support area formed by the 55-, 100– and 200-hour SMAs, as well the weekly PP in the 105.30/105.54 area.It is likely that the exchange rate could continue to trade upwards within the following trading session. In this case the rate could reach the weekly R1 located at the 106.17 mark.
Hourly Chart
On the daily candle chart, the channel up pattern, which captures the 2021 surge, has remained intact. The lower trend line supported the 105.00 mark, from which the rate bounced off on Tuesday.
In the meantime, on Wednesday, the pair passed the resistance of the 200-day simple moving average, which was located at the 105.40 level.
Daily chart
On Tuesday, on the Swiss Foreign Exchange 61% of open position volume was in short positions.
On Wednesday, the sentiment was 67% short, as long traders had taken profits and additional short positions were opened in the expectations of a decline.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 52% to buy.