On Wednesday morning, the USD/JPY currency exchange rate tested the support of the 55-hour simple moving average, the weekly R1 simple pivot point and the 110.00 mark.
Future forecast were based upon whether these levels provide support.
Economic Calendar
On Tuesday, at 12:30 GMT, the US Retail Sales and US Producers Price Indices are expected to be released. The Retail Sales have caused moves from 9.3 to 17.7 pips since January. The PPI has moved the USD/JPY from 9.3 to 21.7 pips during this year.
On Wednesday, the top event of the week would occur. At 18:00 GMT, the US Federal Funds Rate and Fed Statement could cause a move from 7.8 to 34.5, as it had done since November 2020.
On Thursday, the US Unemployment Claims could cause a move from 7.4 to 21.7 pips.
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 case of the rate passing the support levels near the 110.00 level, the pair would most likely reach for the support of the 61.80% Fibonacci retracement level at 109.83 and the 100-hour simple moving average at 109.79. Below these levels, the 200-hour SMA might hold at 109.67.On the other hand, a potential recovery would reach for the resistance of the 110.20 level and the weekly R2 simple pivot point at 110.23. Above these levels, the weekly R3 could provide resistance at 110.62.
Hourly Chart
USD/JPY daily chart's review
On the daily candle chart, the pair is surging in the borders of a channel up pattern, which has guided it since the middle of April. In the meantime, the rate has additional support from the 55-day simple moving average at 109.25.In the case of the channel holding and the rate surging in its borders, a potential target would be the 2020 high zone near the 112.00 level.
Daily chart
On Monday, traders on the Swiss Foreign Exchange were 71% short on USD/JPY, as 71% of open position volume was in short positions.
On Tuesday, the sentiment was 67% short. By the middle of Wednesday, the sentiment was 65% short.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 62% to sell.