The 104.60 level did not provide enough support to hold the USD/JPY rate up for long. Namely, the rate traded above the 104.60 from 13:00 GMT on Tuesday to until 01:00 GMT on Wednesday.
On Wednesday, the rate reached the support levels at 104.13, which caused a retracement back up to the 104.40 mark.
Economic Calendar
On Thursday, at 12:30 GMT two events will be released that the financial media will talk about. However, recently both of them have not caused notable moves.
The GDP has moved the USD/JPY from 9.2 to 21.1 pips since July 2019. Meanwhile, the Unemployment Claims since September 24 have caused 2.9 to 9.2 pip moves
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 likely that the exchange rate could gain support from the weekly and monthly S1s at 104.13, and trade upwards in the short run. Meanwhile, it is unlikely that the rate could exceed the resistance formed by the 55– and 100-hour SMAs near 104.70.However, if the predetermined support levels fail, the currency pair could continue to trade downwards in the nearest future. In this case the pair could decline below the psychological level at 104.00.
Hourly Chart
On the daily candle chart, note that the 104.20 level stopped the rate's decline in late July and September.
In the meantime, if one adds a resistance line by connecting the July, August, September and October high levels, a descending triangle pattern can be observed.
Daily chart
Since Thursday, traders of the Swiss Foreign Exchange were slightly short, as 54% of all open position volume was in short positions.
On Wednesday, the sentiment became neutral, as 52% of volume was short.
In the meantime, on Tuesday, trader set up pending orders in the 100-pip range around the rate were balanced. 50% of orders were to buy and 50% were to sell.
On Wednesday, traders set up buy orders, as 71% of orders were to buy the pair.