The decline of the USD/JPY has continued, as the rate touched the 103.30 level at mid-day GMT hours on Wednesday. However, after touching the 103.30 level, the rate recovered.
The recovery reached the resistance of the 103.60 level, from which it could bounce off and resume the decline.
Economic Calendar
On Wednesday, the day would end with the top event of the whole calendar. The US Federal Reserve is set to publish their Federal Funds Rate and FOMC Statement at 19:00 GMT. However, this is one of the three times when the FOMC Economic Projections are published. During the publication of the projections the USD/JPY has moved 28.7 pips in June and 26.6 in September.
On Thursday, at 13:30 GMT the US Unemployment Claims could create a move of 4.8 to 8.7 pips. Dukascopy Analytics mostly ignore this event, as it does not create notable short term volatility increases. However, due to it being popular on financial media, a comments and the numbers are provided.
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
Future forecasts are based upon whether or not the 103.60 level holds.In the case of the 103.60 mark holding, the pair would resume its decline. It would first test the support of the weekly S2 simple pivot point at 103.41. This level is likely going to be passed, as it did not held on Wednesday.
Afterwards, the 103.30 mark could stop a drop. Last but not least, the 103.00 round exchange rate level could be reached. Note that this level was strengthened by the weekly S3 simple pivot point.
On the other hand, a potential surge of the pair would face the weekly S1 simple pivot point at 103.77 and the three hourly simple moving averages from 103.80 to 104.00.
Hourly Chart
On the daily candle chart, the rate pierced the support zone, which kept the pair down since November 18. It indicates that the pair could reach for the November low level of 103.20.
Daily chart
Since Tuesday, on the Swiss Foreign Exchange 68% of volume was in long positions.
Meanwhile, trader set up pending orders in the 100-pip range around the rate were 66% to buy the pair.