The USD/JPY consolidated on Tuesday morning by retracing to the 104.20 level. This level provided support, which caused a surge.
By the start of US trading hours, the currency exchange rate had reached above the 104.70 mark.
Economic Calendar
Another day to watch the Economic calendars will be Wednesday. At 12:30 GMT the usual US weekly Unemployment Claims are set to grab the attention of the financial media despite the event not moving the markets. At the same time, the US Preliminary GDP is set to be published. This event also, despite being on the headlines, has not caused notable market moves.
At 19:00 GMT, the US FOMC Meeting Minutes are scheduled to be published. Do not expect an immediate reaction of the markets, as the Meeting Minutes is not a statistics number, but a pdf document that contains clues on the future of the US monetary policy.
Its impact is gradual, as various market participants make their trades based upon how they interpret the information in the document. Quite often, the same text or even word is interpreted differently by various market participants. What matters is whether bullish or bearish views dominate after the publication.
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
In the near term future, the rate was set to test the resistance of the weekly R1 simple pivot point at 104.80. If this level, fails to keep the rate down, a 23.60% Fibonacci retracement and the psychological resistance of the 105.00 mark could keep the rate down.In the case of the 104.80 level's resistance holding, the pair could either trade sideways between the 104.60 and 104.80 levels or decline to the 200-hour simple moving average at 104.30 and the weekly simple pivot point at 104.23.
Hourly Chart
On the daily candle chart, the rate continues to recover its previous losses.
In the meantime, take into account that the resistance of the 105.00 level is strengthened by the 55-day simple moving average. However, this level did not properly hold in late August, early October and early November. It was pierced for a couple of trading sessions during these time periods.
Daily chart
On Monday, on the Swiss Foreign Exchange 63% of volume was in long positions.
By the middle of Tuesday's GMT trading hours, the sentiment was 65% long.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 61% to sell the pair. The orders were 61% to buy on Monday.