The USD/JPY broke the resistance of the weekly R1 simple pivot point at 105.77 on Wednesday morning. This resulted in a surge that reached above the 106.00.
In the near term future, the rate was set to test the weekly R2 simple pivot point at 106.22.
Economic Calendar
On Wednesday, note that some calendars show the FOMC Meeting Minutes at 18:00 GMT. This is a publication of the minutes without a rate statement. In the past, this event has not caused sharp moves, as the Meeting Minute impact comes on gradually while the markets read and analyse.
On Thursday, as always the US Unemployment Claims at 12:30 GMT might cause a minor move.
Click on the link below to find out more about the data releases.
USD/JPY short-term daily review
It is likely that some upside potential could prevail in the market in the short run. In this case the exchange rate could face the resistance level—the weekly R2 at 106.22.If the predetermined resistance level holds, the rate could trade sideways within the following trading session. Otherwise, the pair could target the psychological level at 106.40.
Hourly Chart
On the daily candle chart, the rate has broken the resistance of the 55-day simple moving average, which kept the rate down since the middle of July.
However, the rate once pierced the SMA and was immediately stopped by the technical resistance of the 100-day SMA. On Wednesday, the 100-day SMA was located near 106.50.
Daily chart
On Wednesday traders of the Swiss Foreign Exchange were short, as 64% of all open position volume was in short positions.
During the middle of Tuesday's trading, 65% of volume was short.
Meanwhile, trader set up pending orders in the 100-pip range were 81% to sell.