The USD/JPY executed a sharp surge up and reached above the 105.00 level by touching the 105.35 mark. However, the USD began an all-out retreat on all charts after the sudden surge.
By the middle of Wednesday's GMT trading hours, the currency exchange rate had retreated to the 104.50 level. Moreover, it had no technical support as low as the daily candle chart's large scale triangle pattern.
Economic Calendar
On the day after the US Election, on Wednesday, the US ISM Non-Manufacturing PMI will be published at 15:00 GMT.
On Thursday, expect the weekly US Unemployment Claims to cause a minor move at 13:30 GMT. Throughout October, the event has caused USD/JPY moves from 2.9 to 8.5.
Later in the day, at 19:00 GMT, the US Federal Reserve will make a Rate Statement. Namely, the bank will react to the US Election and the following market reaction. Previously, the Fed had stated that they intend to stop a market crash, if one starts due to the election results.
On Friday, the US are publishing their monthly employment statistics. Among them will be the Average Earnings, Unemployment Rate and official Non-Farm Employment Change. In general, the Average Earnings and Employment Change reveal, how much USD is used for employment.
The currency exchange rate has moved from 10.4 to 48.7 pips on the announcement since June.
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
At mid-day on Wednesday, the rate was expected to test the support of the 104.40 level, which provided the rate with resistance at midnight and caused the surge.If the 104.40 mark gets passed, the rate would look for support in the 104.20/104.00 zone. Note that the weekly S1 simple pivot point was providing support at 104.13.
Hourly Chart
On the daily candle chart, the rate remains in the orders of a large scale descending triangle pattern. The pattern's support is the 104.00/104.20 zone.
In the meantime, the rate faces the resistance of the patter near the 105.50 level. In addition, take into account the resistance of the 55-day simple moving average at 105.45.
Daily chart
On Tuesday, traders of the Swiss Foreign Exchange were neutral, as 52% of all open position volume was in long positions.
By the middle of Wednesday's GMT trading hours, the sentiment was 56% long.
In the meantime, trader set up pending orders in the 100-pip range around the rate were 59% to buy the pair.