Meanwhile, the rate was located twenty pips from both support and resistance levels.
Economic Calendar
On Wednesday, September 18, the FOMC Statement and Economic Projections releases are expected at 18:00 GMT. Note that the Federal Funds Rate data will be published at the same time. Since December, these releases have moved the pair from 25.8 to 52.1 pips.
On Thursday, September 19, the Bank of Japan is expected to release the Monetary Policy Statement.
USD/JPY short-term daily review
Yesterday, the US Dollar appreciated 0.67% against the Japanese Yen. During Wednesday morning, the USD/JPY currency pair traded sideways at the 108.20 level.Note that the exchange rate is supported by the 55– and 100-hour SMAs, currently located circa 108.05. Thus, some upside potential could prevail in the market. Important level to look out for is the Fibo 38.20% at 108.44.
On the other hand, the Greenback could maintain its consolidation against the Japanese Yen within the following trading session. It is unlikely that bears could prevail, and the pair could drop lower than the weekly PP at 107.23.
Hourly Chart
On the daily candle chart, the pair has broken the resistance of the 100-day simple moving average. After the technical level was passed, it began to provide support at 108.00.
Daily chart
Read More: Technical Analysis
Traders continue to be long
On Tuesday, 58% of open USD/JPY position volume on the Swiss Foreign Exchange was in long positions.
By the middle of Wednesday's London trading, the volume had decreased to 56% long.
Meanwhile, trader set up orders were bearish. Namely, in the 100-pip range 67% of pending orders were set to sell and 33% were to buy.
Previously, the orders were 69% to sell.