Two recent low levels booked by the USD/JPY currency exchange rate have revealed that the lower trend line of the channel down pattern is located at a different level. However, the rate has still continued to respect the upper trend line of the pattern and declined.
In the meantime, note that the 55-hour simple moving average has been providing resistance to the currency exchange rate since early Monday's trading. Meanwhile, the pair had mostly ignored the support of the 100 and 200-hour simple moving averages near 109.20 and 109.10.
Economic Calendar
The rate could move due to the FOMC Meeting Minutes on Wednesday at 18:00 GMT. The pair has moved from 3.8 to 7.9 pips on the release.
Click on the link below to find out more about the data releases of this and other currency exchange rates.
USD/JPY short-term review
In the near term future, the rate could be pushed into the support of the 109.00 level. If the 109.00 level fails to hold, the rate could decline as low as 108.60.On the other hand, a breaking of the pattern and the 55-hour SMAs resistance would result in a surge to the 109.70/109.80 zone.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, despite being pierced for three days, it appears that the 55-day simple moving average has provided some support to the recent surge.In addition, note the Fibonacci retracement levels. Namely, the 50.00% Fibonacci retracement at 108.57 and the 61.80% Fibo at 110.05.
Daily chart
Since Friday, traders on the Swiss Foreign Exchange were 65% short on USD/JPY.
However, on Monday, trader set up pending orders in the 100-pip range around the rate were 56% to buy the pair.
Previously, the orders were 56% to sell.