The USD/JPY continued to ignore technical levels. After passing various support levels and trading below them, on Tuesday, the rate began a sharp surge. By the middle of Wednesday's GMT trading hours the rate had jumped above the 110.40 level.
In general, the surge was caused by fundamentals associated with the coronavirus, as the Japanese Yen has been abandoned as a safe haven asset. Instead gold has been bought as a safe asset.
A report on the surge is set to be released by Dukascopy Analytics in the near term future.
Economic CalendarThis week, there is only one event that could influence the USD/JPY rate.
On Wednesday, the Federal Reserve will publish its FOMC Meeting Minutes at 19:00 GMT. The rate has moved from 6.2 to 15.3 pips at the time of the announcement.
Meanwhile, the week's data is available. Click on the link below to see the historical data table with the reactions to the event.
USD/JPY short-term daily review
By the middle of Wednesday's London trading hours, the pair had passed a pivot point at 110.40. Due to that reason, the most close by technical resistance was a cluster of technical levels near 110.70.At that level, the rate would meet with a trend line, a 61.80% Fibonacci retracement level and the weekly R3 simple pivot point.
If this level fails to provide resistance, the rate could next reach for the 111.00 and 111.50 levels. On the other hand, if the resistance holds, the pair should retrace back down to the pivot point at 110.40 level.
Hourly Chart
On the daily candle chart, the resistance trend line of the 2019 and 2020 high levels can be better observed.
Daily chart
Since Monday, 71% of open USD/JPY position volume on the Swiss Foreign Exchange was in short positions.
On Tuesday, 72% of volume was short.
Meanwhile, in the 100-pip range 70% of pending orders were to sell and 30% were to buy.